Scatec ASA — Call Transcript 2026

Good morning, everyone, and welcome to our fourth quarter presentation. Our growth continues, and we deliver on our strategy with a high level of activity across all of our segments and all of our portfolio. We are growing our pipeline. At the same time, we continue to also strengthen our financial position. We are operating in markets with strong underlying demand, and we're focusing on markets with strong underlying demand for clean, affordable, and flexible power. Renewable energy is the most competitive source of power generation in our markets, and we continue to see strong and attractive long-term demand for renewable energy in our markets. This is reflected in the additional projects that we are able to secure in our markets, and it's also reflected in the growing pipeline that we are presenting today. Today, I will start with a summary of our 2025 achievements, and then I will take you through the highlights of the quarter. Hans Jacob will go through the financials, and then at the end, we will also provide comments on our outlook for 2026. Then to summarize our full year, 2025, we are scaling the platform while maintaining continuing to maintain financial discipline, and we have also strengthened our balance sheet. We see strong near-term growth, and we have 11 GW of generation capacity across our projects in operation, in construction, and in our backlog, and this is our largest near-term growth that we have ever had. We have also significantly strengthened our position in storage and hybrid solutions, reflecting the increasing demand for flexible and hybrid systems. Our growth portfolio now includes more than 6.5 gigawatts of battery storage systems, and this development is supported by battery prices falling over the past two years, and we aim to continue to increase our pipeline in this space. During the year, we have also reduced our gross debt, corporate debt, by 25%, and our corporate debt now stands at $6.7 billion. This is something that we have done while we continue to invest in new projects and new capacity. Overall, I'm very happy with the performance that we have achieved last year, and we are proving that we can execute on growth while we continue to deleverage, building a resilient and a very scalable platform. Let me then take you through the highlights of the last quarter. We delivered strong group revenues of $3.4 billion. This is an increase of 35% relative to the same quarter last year, and this is mainly driven by high activity in our development and construction segment. We have very good progress on our projects under construction, and in the quarter, we recognized NOK 2.3 billion in revenues and also a gross margin of 14%. The key drivers here were Obelisk in Egypt and also the Mogobe BESS projects in South Africa. It's all important to emphasize that the attractive gross margin that we are recognizing, it is based on a very strong underlying economics of the projects that we currently have in our construction portfolio. We also continue to mature our pipeline and secure new projects for future growth, with the backlog now reaching an all-time high of 5.3 GW of generation capacity and 4.7 GWh of battery storage capacity. This is driven by new PPAs that we've been signing over the quarter in Egypt, in Tunisia, and also in the Philippines. One of these projects, which is Energy Valley, is really a landmark project in Egypt, and we will come back and talk a bit more about that later. In parallel, we have also improved our corporate debt maturity profile, issued a new bond in November during the quarter. We also paid down a term loan, and at the end of the quarter, at the end of the year, we have a very strong liquidity position of NOK 5.6 billion. So with that, let me also then take you through the key elements of the power production segment. Last quarter, we generated 1 TWh, and this is in line with last year when we adjust for the divested assets. New projects contributed with 73 GWh. This is from Grootfontein in South Africa, and it's also from the Mmadinare project in Botswana. While when it comes to the Philippines, we generated slightly lower MWh, and this is due to hydrology. Revenues from power production amounted to around $1.1 billion, and this is broadly also in line with last year when we adjusted, adjusting for the divestments that we've done. And overall, this demonstrates the resilience and the predictability of our contracted generation portfolio, even as we continue to actively optimize our portfolio. Now, a few words on Ukraine, and here, the ongoing war obviously represents a challenging environment, a challenging environment for operations. We own and operate 5 projects in Ukraine, in the central and the southern parts of Ukraine, with a total capacity of about 336 MW. During the fourth quarter, the substations and transformers related to 1 of our projects were targeted and damaged by a Russian drone attack. Our first priority in this situation is our employees in the country, and it's very good to know that those are unharmed, at least physically, after this drone attack. But the power plants, the power plant is disconnected due to the damage and is currently not delivering energy onto the grid. Ukrenergo, the state-owned utility, and our team is working very hard to repair the damages, and we are currently targeting to get the plant reconnected to the grid and start delivering energy again in the beginning of the second half of this year. This is obviously impacting the power generation from Ukraine during the year, and Hans Jakob will come back and comment on this also in the outlook for the year. So let me now talk about the Philippines. Here, we delivered yet another solid quarter. The Philippines continues to be a major financial contributor to the company. We generated 249 gigawatt hours in the quarter, and despite the slightly lower generation compared to last year, the financials from Philippines were better than last year. Overall, we reached net revenues of $403 million. This is up from $390 million, same quarter last year, and here we are now seeing the benefits of having a flexible asset portfolio and active trading operations in the country. This is now demonstrated based on the fact that, as we have several revenue streams and that we're able to capture attractive trading opportunities, and through this, we are able to deliver good and strong financial results, despite the fact that the hydrology is slightly lower in the quarter. We also continue to allocate a significant part of our capacity to the ancillary services market in the country. Again, based on the fact that we are seeing attractive revenue opportunities, earnings opportunities in that segment, and based on our ability with the flexible asset portfolio that we have. Prices in the quarter were also up, and additionally, we've been able to capture higher-than-average prices on our contracts, and this is also contributing to the financials. So in terms of EBITDA, that increased by NOK 31 million in the quarter to NOK 363 million. Then, in terms of construction, we currently have 1.5 gigawatts of solar and 700 megawatt hours of battery storage projects under construction in five different countries. Andreas is fixing that. In addition to this, we are also progressing well in our release platform, and we are also having a few projects in that platform being installed as we speak. Since last reporting, we've had a very good construction progress across the portfolio, and we have recorded NOK 2.3 billion in revenues and a gross margin of 14%, as I've already said. The EBITDA for the D&C segment was $251 million, which is a very high level. Grootfontein in South Africa, and also the second phase of the Mmadinare project in Botswana, reached COD during the quarter and is now in operation. In Tunisia, we target COD for the Tozeur project and the Sidi Bouzid project by the end of the quarter, and for the solar project in Brazil, and also for our battery projects in the Philippines, we are expected to reach COD by the end of the first half of the year. When it comes to Mogobe in South Africa, our first battery project in South Africa. Okay. So when it comes to the solar project in Brazil and also the battery projects in the Philippines, we are expecting to have COD by the end of the first half. And then when it comes to Mogobe, our first standalone project, standalone BESS project in South Africa, we are, for this project, expecting to reach financials in the second half of this year. In general, I'm very pleased with the progress that we're seeing on the construction activities across our portfolio, and I'm very proud of the teams that are doing a very good job on this. At the end of the quarter, we have $1.8 billion in remaining contract revenues related to the projects that we currently have in construction, and we're continuing to expect to have a gross margin of 10%-12% related to these projects. Beyond this, obviously, we continue to mature projects that we have in backlog, and we foresee that we're going to continue to have a high activity level in the construction segment going forward. Now, let me also take some time to appreciate our largest project to date, the Obelisk project. Total CapEx of this project is close to NOK 6 billion, and when it's finished, it will generate in the range of 3 TWh on an annual basis, and it will provide 1.3 million tons of CO2 emission reductions. It's a massive project, and it's being constructed at record pace. We have already completed phase one, which is including 50% of the solar capacity, 100% of the battery capacity, and obviously also a very large substation. And this is only about 15 months since we signed the PPA. We are having about 5,000 people on site, and this team is installing in the range of 200,000 modules on a monthly basis. So we're working very hard to secure commercial operation for phase one ahead of schedule by the end of this quarter, and also accelerating the completion of phase two, and we're targeting to reach COD for phase two already this summer. And obviously, building this project, constructing this project, gives us a lot of very valuable experiences and learnings, and we will use these learnings when we are now moving forward also and preparing to start construction for the other projects in Egypt, like for instance, Egyptalum and also the Energy Valley project. I will now zoom out a bit and talk about our growth portfolio. We have an all-time high backlog of 5.3 GW of generation capacity, and this is including projects in Egypt, in South Africa, in Tunisia, in Romania, and in Colombia. When the construction of these projects, including the ones in backlog, have been completed over the next few years, we will reach a total generating capacity of 11 GW. This is up 2.5 times relative to where we are today. In addition, behind this, we have a pipeline of 7.4 GW that obviously we will continue to mature and convert into backlog also over time. Our growth portfolio also includes battery storage, either in hybrid systems or as standalone storage systems. Here we have a backlog of 4.7 GWh in South Africa, Egypt, and the Philippines. We have now chosen to show this portfolio separately, so that you can see also how this is growing over time, and we believe that there's going to also be significant growth opportunities in this space going forward. Let me now also turn at the end to a landmark agreement signed in Egypt, which is a 25-year PPA for 1.95 GW of solar and 3.9 GWh of battery capacity. So the Energy Valley project, as you will see on this page, includes two standalone BESS installations and one solar and battery hybrid facility. And part of the production from this hybrid facility will be used to provide 24/7 green base load power, and this is a first of its kind. The project will generate about 6 TWh when it is in operation. It will provide about 2.4 million tons of CO2 reductions, and it will save Egypt $150 million on an annual basis in saved fuel costs related to the alternative, which is running their thermal power plants. $150 million on an annual basis. And with the signing of this agreement, we are cementing our position in Egypt as one of the leading players in renewable energy in the country, and we have a very strong team on the ground which is, which is driving this. And in total, we now have five large growth projects in Egypt across different technologies: solar, wind, batteries, and green hydrogen. These projects, they will generate substantial D&C revenues over the next few years as we move them through construction. On a longer-term basis, obviously, they will also generate predictable revenues in the power production segment related to the 25-year PPAs that we have for these projects. And finally, also, this portfolio will contribute to reduction of 5 million tons, 5 million tons of CO2 emissions. And just for reference, this is more than 10% of Norway's CO2 emissions on an annual basis, more than 10%. So we now focus on finalizing construction of Obelisk and securing partners and financing this portfolio with the aim to move this portfolio into construction by the end of this year. So with that, Hans Jakob, I will hand it over to you to take us through the financials. Thank you, Terje. Is the microphone okay? Yeah. So it's been said before, but we are pleased to present strong results across the group, high D&C activity, and a good quarter in the Philippines. I'll walk you through the group financials and the performance of our operating segments, and I will also comment on capital structure and further improvements. Starting at group-level performance, the last three years has been a transition period with increased capital recycling and accelerated growth. The full year consolidated revenues was NOK 5.2 billion and EBITDA, NOK 4 billion. Our proportionate revenues was NOK 11 billion and EBITDA, NOK 4.6 billion, both positively impacted by the D&C segment. Looking at the quarter on group level, the all-time high D&C activity is driving proportionate revenue growth, positively impacting our group financials. Consolidated revenues was NOK 1 billion, compared to NOK 1.1 billion in the same quarter last year. EBITDA reached NOK 697 million, compared to NOK 816 million year-on-year. The reduction is mainly driven by divestments, which has been instrumental to our long-term strategy of funding growth and reducing debt. This will result in additional revenues from new projects and lower interest expenses and reduced debt. Our proportionate revenues was NOK 3.4 billion, compared to NOK 2.7 billion in the same quarter last year, and the proportionate EBITDA was NOK 1 billion, compared to NOK 1.4 billion, year-on-year. Now, let me take you through the segments. Starting with power production, which delivered revenues close to NOK 1.1 billion, compared to NOK 1.6 billion in the same quarter last year. The reduction is mainly explained by the divestment gains of $300 million, booked in the fourth quarter last year. EBITDA was $842 million, and on a 12-month rolling basis, you can see stable development, adjusting for sales gains, as we are managing to offset the EBITDA from divested assets with new projects. The last 12 months, we have delivered $5.2 billion in revenues and $4.3 billion in EBITDA. Overall, we are very pleased with the value generated from our operating assets. In our development and construction segment, activity levels continue to increase. Proportionate revenues more than doubled to $2.3 billion, and EBITDA was $251 million, significantly up from the $51 million in the same quarter last year. The trend from the last 12 months confirms the long-term strength and scalability of our D&C business, underlying strong growth. D&C revenues the last 12 months have reached NOK 5.8 billion, with a steady increase over the last quarters, five quarters in a row. The rolling EBITDA ended at 462 million, with contribution from high-margin projects and disciplined cost control. The increasing trend reflects higher activity levels across several geographies, with Obelisk in Egypt and Mogobe in South Africa being in the forefront in this quarter. With a strong backlog, including eight projects in five countries expected to start construction in the first half of this year, we expect D&C to remain a key engine on our continued profitable growth. At the end of the quarter, we had available liquidity of NOK 5.6 billion. Let me explain some of the main movements. We received NOK 631 million in distributions from power plants, had positive working capital movements of NOK 596 million, mainly related to milestone payments for Obelisk. We invested net NOK 220 million in growth projects and paid NOK 130 million of interest and reduced our corporate debt by NOK 73 million. The EBITDA from the D&C covered investments in the quarter, which is a confirmation of our robust business model, and the RCF is currently undrawn. We continue to strengthen our capital structure. Net corporate debt was reduced to NOK 3.4 billion, down from 5.6 in the second and 4.3 in the third quarter. The reduction was mainly driven by the change in cash on NOK 900 million. We also repaid the outstanding term loan with the proceeds from the 1 billion NOK bond. On project level, net debt increased by NOK 800 million to NOK 16.7 billion, and the project debt in operation increased by NOK 2.3 billion, as Grootfontein in South Africa and Mmadinare project in Botswana debt moved to operation after COD, and the net debt for project under construction was reduced by NOK 1.4 billion. Now, the outlook for the year. So commenting on the 2026 outlook, I will start with the full-year estimate of power production between 5.2 and 5.6 TWh. Our estimated full-year EBITDA is in the range of NOK 3.8 billion-NOK 4.1 billion. And let me explain some of the main items affecting the guidance compared to the NOK 4.3 billion we delivered in the full year last year. Last year, we reported $500 million in divestment gains and operational EBITDA related to Uganda, Vietnam, which we sold during the year. We had $200 million of retroactive payments for tariff adjustments in the Philippines and Pakistan. In this year, we expect reduced EBITDA from Ukraine due to the repair of one of our plants and lower payment levels for the remainder of the portfolio in the country. Lower EBITDA from the Philippines and Laos due to the normal hydrology expected, compared to the high levels we saw in 2025. These effects will be partly offset by contributions from new projects that are starting operations during the year and other operational improvements. For the first quarter, we expect a total power production between 950 and 1,150 GWh, EBITDA in the Philippines of $180 million-$240 million, based on the normal hydrology and strong contributions from ancillary services. In our D&C segment, we have $1.8 billion remaining contract value and a gross margin estimate of 10%-12% on average across the portfolio or project under construction. For corporate, we expect a full year EBITDA of -$125 million to -$135 million, and these estimates reflects a strong base of operating assets, high construction activity, and healthy cost control. By that, I invite you back, Terje, to take us through the summary. Thank you, Hans Jakob. So to sum up, 2025 was a very good year for Scatec. We've had good financial performance, high construction activity during the year. We have significantly increased the pipeline and backlog during the year, and we have also strengthened the balance sheet. I like to think that 2025 was a transformative year for Scatec. We also launched our new targets and our strategic priorities during our Q3 presentation. And in 2026, in line with this, we will focus on strong operational performance, execution of our significant growth portfolio, divestment of non-core assets, and also take further steps in terms of deleveraging our corporate balance sheet. I think it's going to be very exciting and a very active and hectic year. Thank you very much. And now we will move to questions. Thank you, Terje and Hans Jakob. Over to the Q&A. We will, as usual, start with the audience in the room, and then we will take some online questions. So if you want to ask a question, just raise your hand. Thank you. Anders from SEB. In your guidance for 2026 on power production, you provided some soft comments about the changes in Ukraine, but could you be more explicit in how much the contribution in Ukraine is expected to be compared with 2025 levels? Some rough indication. Yes. I think in one of Terje's graphs, he showed the impact in the fourth quarter last year of $67 million. I think it's also in the fact sheet. Looking at the outlook, as Terje said, the team is working incredibly hard to reinstall the capacity, and it's anticipated to take until summer. And we haven't provided a figure, but in ballpark, around $100 million. Okay, so, but you also made a comment about somewhat lower payments from Ukraine. Lower payment levels that Terje is very much aware of, and as the rest of us. We have basically had very high, higher than expected payment levels last year. So starting the year with a more cautious approach to more normal as expected payment levels is a fair assumption. So if I just to summarize, the baseline should be somewhat lower and roughly $100 million below the baseline for the first half? Yeah. Okay, thank you. I have another question as well, if I may. In the development and construction segment, I appreciate that you're progressing projects and are trying to sustain activity also in the first half, but there are some financial closures which needs to be in place for that to happen. How should we think about the first half in D&C, upon completion of the projects currently under construction, the $1.8 billion? Your question is, what is going to come potentially in addition? Yeah, or how quickly? Is that a second half event, or are you still comfortable with the commencement of construction, as you indicated in the past, during the first half, for a number of reasons? Yeah, I mean, we're typically not commenting on specific dates or exactly sort of when the projects in our backlog are going to come into to financial close and start of construction. But we see that sort of across the backlog that we currently have, there are also some projects that we anticipate will come into to construction, reach financial close and come into construction the first half of the year. Okay. Thank you. Thank you. Andreas Nygård, Nordea. You have huge projects now going on in Egypt. Should we assume that you can continue to originate 2-3 gigawatts of projects annually in Egypt? I think now, I mean, as we went through here, we now have five significant projects in Egypt that we're going to focus on securing financing, bringing in investors, bringing to financial close, and start construction during this year. And I think that's going to be a main priority for the year. There's still significant more opportunities in Egypt related to renewable energy. Renewable energy makes sense in Egypt. It's basically saving cost related to the alternative sources of power generation. So, and Egypt is trying to accelerate their program for reaching their targets when it comes to renewable energy in the power mix. They had certain targets. I think it's 42% by 2035. They took it back to 2030, and now they're trying to reach it even earlier. In that context, and based on our position in Egypt, we see more opportunities in Egypt. Okay, that's very clear and very, very nice to hear. But this scale of projects, could you find it outside of Egypt, or is Egypt quite special right now in terms of the scale of the projects? Could you see 2 gigawatt projects in South Africa, for instance? Yeah, I do think you could also see projects at that scale also in, in South Africa, but obviously it also depends a bit on how the, the regulations are developing. But I think as, as the power sector also in South Africa will continue to be deregulated, we will also see more opportunities to do corporate PPAs, and to build out large portfolio of projects that can basically sell energy to more corporate offtakers. So I think that's a development that we will see, and then we will obviously look for developing larger clusters of projects also in, in South Africa. So there is also potential for larger projects in South Africa. So, in summary, the activity level you're expecting in 2026 and 2027, that rate could likely just continue in 2028, 2029, and for eternity? Let me answer your question like this. I continue, or we continue to see that renewable energy becomes more and more competitive in the markets where we operate. With batteries, it becomes more flexible. It can provide baseload green power. And in many of the markets where we operate, we are the countries are, in principle, saving money, reducing alternative costs of power generation from implementing renewables. So I don't, I don't see a reason why the current pace in the industry is not going to continue. And I think based on everything that we are currently doing and the track record capabilities of the organization that we have, I think that we are in a good position to capture part of that growth. Okay, that's it from me. Thank you. Okay, thank you. We have a couple of questions from our, online listeners as well. We can start with Jørgen Lande from Danske Bank. "Good morning. In terms of recent movements in input costs, like silver and copper, can you comment on how this potentially has impacted the progress of reaching FID? I think there's a couple of things happening in the industry. Some common prices are going up. The VAT rebate in China has been removed, or is being removed over time related to panels and batteries. On the other side, we also see that other components that we are using, we are able to achieve savings. And the things that are happening in this industry is obviously not. It doesn't come as a surprise to us. So we don't see that any of these things that are happening in the industry will have any significant impact on where we will be able to reach FID and take financial close and start construction of the projects that we currently have in the backlog. We will obviously continue to be very disciplined in terms of our hurdle rates, in terms of making sure that all the projects that we are doing are value creating for us and our shareholders. But based on what we are currently seeing, we see that sort of the changes in the industry is manageable and not all surprising. Thank you. One question from Helene Brøndbo from DNB Markets. "Can you shed some more light on the status of your ongoing asset rotation program? Yeah, that's the one we are not sharing a lot of detail on the, on, announcing transactions. What we have said is, of course, that we have clear, ambitious targets, another $3.4 billion proceeds to 2030. This is within a time frame which should be manageable, and it's, main focus on the, on the non-core. It's also reaching, certain ownership stakes deliberately on, on project, carefully timed. So we have discussions ongoing, and we are, in terms of our long-term plan, according to plan. Thank you. Helene also asked about the input costs. I think we have covered that. Another one from Helene: "To what extent can we expect the, the solid D&C gross margin in Q4 to be repeated? Yeah, here, I mean, we have commented on that in our outlook, and we're saying that with regards to the $1.8 billion that we have remaining in construction revenues or contracts, we are expecting, and we are indicating that we will continue to reach in the range of 10%-12% gross margin on those contracts. Thank you. Another one from Jørgen Lande, Danske Bank. You guide 2026 power production to a midpoint of 5.4 TWh, which is higher than the midpoint of consensus, while EBITDA implies a very soft, a softer margin. Can you comment on how you think about power production EBITDA in 2026? Yeah. So I understand, I think I understand at least where Jørgen is coming from. So is there a misalignment on the EBITDA side? And it has to do with the composition or the contribution. So I think we have to stick to the guidance that we have provided today, and $3.8-$4.1 is explained also in contrast to last year, the one-offs. Any divestments is, of course, a potential deviation, but also the impact and the pace of the new projects coming in. And I think it feels at least a bit special for us, taking the development into account. Kenhardt and then doubling to Obelisk, and then we have Energy Valley. But we're not pre-announcing anything. We just signed a PPA, but we are working very hard to mature this project, and that is, of course, a significant potential contribution. How this is forecasted, I think we have to stick to professional secrets. Thank you. We have some question from Anis Zgaya, from Oddo BHF. One on Ukraine, I think we covered that one. Another one on the Philippines. You show sustained contribution from ancillary services and a favorable water fee settlement in 2025. How should we think about AS, ancillary services, pricing, and volumes in 2026 versus 2025? And what's your assumption for a hydrology normalization embedded in the guidance? I think when it comes to the ancillary services market, there are two elements of the ancillary services revenues that we are currently generating. It's partly related to a contract that was secured a couple of years ago, where we have very predictable revenues. And that contract is representing maybe around 50% of the volumes that we are typically seeing in that segment. And in general, when it comes to the pricing, on a short, medium-term basis, I mean, it's very difficult to provide input and outlook in terms of prices, but we don't see a reason on a short, medium-term basis that the prices in the ancillary services market is going to change. Yeah, and on normal hydrology, it's just that, when you use these data for up to ten-year period, you see variations. And last year, I think we agreed that it was above normal hydrology, and- Yeah. It's a bit hard to start the year without normal hydrology as an assumption. So that's where we start off, just being transparent about the relative change. Obviously, the interesting thing when it comes to the Philippines now is that we have two new projects, two new battery storage projects that are in construction and that we are anticipating to reach financial COD in the first half of this year. And that is increasing our capacity related to battery storage from 24 MW to 80 MW in the country. So a tripling of capacity that comes into operation first half this year, that enables us to increase our participation in the ancillary services market. And then on top of that, we are also intending to move more projects. We have more projects in backlog, also related to battery storage, that we will also aim to move into financial close and start of construction, also relatively soon, and that will further then increase our capacity on the ancillary services market and increasing our flexibility in the Philippines and increasing our ability to tap into several revenue streams, as I talked about in the country. I just flipped to the slide that you showed how significant ancillary services has been sustained over several quarters. So with the ramp-up of battery capacity, it's even more robustified. Mm. One follow-up on Ukraine. Any insurance recovery or compensation mechanism you can detail? No, currently, in the current situation in Ukraine, and we have to remember that the war is soon entering its fifth year. It's not really possible to get the insurance which is going to cover these kinds of invasion events in Ukraine. Okay, quite a lot of questions today. Just, I think two more. Lars Christensen, Falkner Securities. Congratulations on the strong results. For the Energy Valley project in Egypt, should we expect any asset rotation to help fund the investment? As we've said, we are continuing to work on our divestment program. We will continue to work on optimizing our portfolio over time and have a very active perspective on our portfolio. In previous presentations, we discussed the fact that we will, in certain projects, also go down in ownership stakes through a layered structure, where we are still able to maintain control over the project. but to take down our direct equity investment into the project, and through that, manage also the capital investment over time. Okay, we'll talk, just one last question. Do you see any problems of the power grid in any of your countries, you have, where you have large projects, and how do you solve these problems? It is clear that sort of with the increased penetration of renewables, especially intermittent renewables, there are situations, I think in all grids, in all countries, where you will have temporary challenges with the grid that will either have to be managed through strengthening the grid over time, or also with the addition of storage capacity and batteries. And there, I'd like to draw the attention to Energy Valley projects. It's three installations, two pure battery installations at two different locations and one hybrid facility. And obviously, those standalone battery installations, they are put where they are in order to help balance the grid and mitigate those types of concerns in those situations. Similarly, same thing is happening in South Africa, where we are now building one standalone battery project, and where we have another one in our backlog. And these batteries are obviously also put into places where they help balance, help balance the grid, and mitigate the challenges that will, in certain places, come into the grid. So this is an important part of our business going forward. We have to be very. We have to be on top of the grid situation in the markets where we operate and make sure that we focus on the areas where there is grid capacity and where we will be able to implement new renewable energy projects and deliver the energy onto the grid. Thank you, Terje, Hans Jakob. One more from, from SEB, SEB. Thank you. Just a final question on asset rotation. The $3.4 billion, when you refer to asset rotation, that relates to projects already in operations as of today, right? That's correct. Thank you. One more from Andreas in Nordea. Thank you. So, just the last one, on your investment target, NOK 1 billion of equity annually. The Energy Valley project, I guess you will structure it perhaps the same way you're doing Obelisk, aiming for an equity bridge, perhaps. The way you're seeing your backlog now, are you actually using the full of your NOK 1 billion equity injection capacity, the way you're looking to structure that backlog? I think the three of us will fight to answer that question. Do you wanna go? No, you can go. Okay. All right. Under construction and in backlog, there is equity around $3 billion, and that is excluding Energy Valley. So Energy Valley is sizable, as you could imagine, and we will come back to more granularity on the project as it is progressing, but we are well underway to reach our target and the guiding from the strategy update. That's basically directionally what I would like to say. But under construction and backlog is around $3 billion equity. Will that be cash? We haven't provided super detailed analysis of this today, and I think we'll come back to it, but I read your question, Andreas, is this in line with what you said you would inject of equity? And I think we are fairly aligned what we have on the plate as is. Okay. Thank you. Okay. With that, I think we say thank you to everyone and today's presentation. Thank you. Thank you very much.

Speaker 4: Good morning, everyone, and welcome to our fourth quarter presentation. Our growth continues, and we deliver on our strategy with a high level of activity across all of our segments and all of our portfolio. We are growing our pipeline. At the same time, we continue to also strengthen our financial position. We are operating in markets with strong underlying demand, and we're focusing on markets with strong underlying demand for clean, affordable, and flexible power. Renewable energy is the most competitive source of power generation in our markets, and we continue to see strong and attractive long-term demand for renewable energy in our markets. This is reflected in the additional projects that we are able to secure in our markets, and it's also reflected in the growing pipeline that we are presenting today. Good morning, everyone, and welcome to our fourth quarter presentation. good morning everyone and welcome to our fourth quarter presentation Our growth continues, and we deliver on our strategy with a high level of activity across all of our segments and all of our portfolio. our growth continues and we deliver on our strategy with a high level of activity across all of our segments and all of our portfolio We are growing our pipeline. we are growing our pipeline At the same time, we continue to also strengthen our financial position. at the same time we continue to also strengthen our financial position We are operating in markets with strong underlying demand, and we're focusing on markets with strong underlying demand for clean, affordable, and flexible power. we are operating in markets with strong underlying demand and we're focusing on markets with strong underlying demand for clean affordable and flexible power Renewable energy is the most competitive source of power generation in our markets, and we continue to see strong and attractive long-term demand for renewable energy in our markets. renewable energy is the most competitive source of power generation in our markets and we continue to see strong and attractive long-term demand for renewable energy in our markets This is reflected in the additional projects that we are able to secure in our markets, and it's also reflected in the growing pipeline that we are presenting today. this is reflected in the additional projects that we are able to secure in our markets and it's also reflected in the growing pipeline that we are presenting today Today, I will start with a summary of our 2025 achievements, and then I will take you through the highlights of the quarter. Hans Jacob will go through the financials, and then at the end, we will also provide comments on our outlook for 2026. Then to summarize our full year, 2025, we are scaling the platform while maintaining continuing to maintain financial discipline, and we have also strengthened our balance sheet. We see strong near-term growth, and we have 11 GW of generation capacity across our projects in operation, in construction, and in our backlog, and this is our largest near-term growth that we have ever had. We have also significantly strengthened our position in storage and hybrid solutions, reflecting the increasing demand for flexible and hybrid systems. Today, I will start with a summary of our 2025 achievements, and then I will take you through the highlights of the quarter. today i will start with a summary of our 2025 achievements and then i will take you through the highlights of the quarter Hans Jacob will go through the financials, and then at the end, we will also provide comments on our outlook for 2026. hans jacob will go through the financials and then at the end we will also provide comments on our outlook for 2026 Then to summarize our full year, 2025, we are scaling the platform while maintaining continuing to maintain financial discipline, and we have also strengthened our balance sheet. then to summarize our full year 2025 we are scaling the platform while maintaining continuing to maintain financial discipline and we have also strengthened our balance sheet We see strong near-term growth, and we have 11 GW of generation capacity across our projects in operation, in construction, and in our backlog, and this is our largest near-term growth that we have ever had. we see strong near-term growth and we have 11 gw of generation capacity across our projects in operation in construction and in our backlog and this is our largest near-term growth that we have ever had We have also significantly strengthened our position in storage and hybrid solutions, reflecting the increasing demand for flexible and hybrid systems. we have also significantly strengthened our position in storage and hybrid solutions reflecting the increasing demand for flexible and hybrid systems Our growth portfolio now includes more than 6.5 gigawatts of battery storage systems, and this development is supported by battery prices falling over the past two years, and we aim to continue to increase our pipeline in this space. During the year, we have also reduced our gross debt, corporate debt, by 25%, and our corporate debt now stands at $6.7 billion. This is something that we have done while we continue to invest in new projects and new capacity. Overall, I'm very happy with the performance that we have achieved last year, and we are proving that we can execute on growth while we continue to deleverage, building a resilient and a very scalable platform. Let me then take you through the highlights of the last quarter. We delivered strong group revenues of $3.4 billion. Our growth portfolio now includes more than 6.5 gigawatts of battery storage systems, and this development is supported by battery prices falling over the past two years, and we aim to continue to increase our pipeline in this space. our growth portfolio now includes more than 6.5 gigawatts of battery storage systems and this development is supported by battery prices falling over the past two years and we aim to continue to increase our pipeline in this space During the year, we have also reduced our gross debt, corporate debt, by 25%, and our corporate debt now stands at $6.7 billion. during the year we have also reduced our gross debt corporate debt by 25% and our corporate debt now stands at $6.7 billion This is something that we have done while we continue to invest in new projects and new capacity. this is something that we have done while we continue to invest in new projects and new capacity Overall, I'm very happy with the performance that we have achieved last year, and we are proving that we can execute on growth while we continue to deleverage, building a resilient and a very scalable platform. overall i'm very happy with the performance that we have achieved last year and we are proving that we can execute on growth while we continue to deleverage building a resilient and a very scalable platform Let me then take you through the highlights of the last quarter. let me then take you through the highlights of the last quarter We delivered strong group revenues of $3.4 billion. we delivered strong group revenues of $3.4 billion This is an increase of 35% relative to the same quarter last year, and this is mainly driven by high activity in our development and construction segment. We have very good progress on our projects under construction, and in the quarter, we recognized NOK 2.3 billion in revenues and also a gross margin of 14%. The key drivers here were Obelisk in Egypt and also the Mogobe BESS projects in South Africa. It's all important to emphasize that the attractive gross margin that we are recognizing, it is based on a very strong underlying economics of the projects that we currently have in our construction portfolio. This is an increase of 35% relative to the same quarter last year, and this is mainly driven by high activity in our development and construction segment. this is an increase of 35% relative to the same quarter last year and this is mainly driven by high activity in our development and construction segment We have very good progress on our projects under construction, and in the quarter, we recognized NOK 2.3 billion in revenues and also a gross margin of 14%. we have very good progress on our projects under construction and in the quarter we recognized nok 2.3 billion in revenues and also a gross margin of 14% The key drivers here were Obelisk in Egypt and also the Mogobe BESS projects in South Africa. the key drivers here were obelisk in egypt and also the mogobe bess projects in south africa It's all important to emphasize that the attractive gross margin that we are recognizing, it is based on a very strong underlying economics of the projects that we currently have in our construction portfolio. it's all important to emphasize that the attractive gross margin that we are recognizing it is based on a very strong underlying economics of the projects that we currently have in our construction portfolio We also continue to mature our pipeline and secure new projects for future growth, with the backlog now reaching an all-time high of 5.3 GW of generation capacity and 4.7 GWh of battery storage capacity. This is driven by new PPAs that we've been signing over the quarter in Egypt, in Tunisia, and also in the Philippines. One of these projects, which is Energy Valley, is really a landmark project in Egypt, and we will come back and talk a bit more about that later. In parallel, we have also improved our corporate debt maturity profile, issued a new bond in November during the quarter. We also paid down a term loan, and at the end of the quarter, at the end of the year, we have a very strong liquidity position of NOK 5.6 billion. We also continue to mature our pipeline and secure new projects for future growth, with the backlog now reaching an all-time high of 5.3 GW of generation capacity and 4.7 GWh of battery storage capacity. we also continue to mature our pipeline and secure new projects for future growth with the backlog now reaching an all-time high of 5.3 gw of generation capacity and 4.7 gwh of battery storage capacity This is driven by new PPAs that we've been signing over the quarter in Egypt, in Tunisia, and also in the Philippines. this is driven by new ppas that we've been signing over the quarter in egypt in tunisia and also in the philippines One of these projects, which is Energy Valley, is really a landmark project in Egypt, and we will come back and talk a bit more about that later. one of these projects which is energy valley is really a landmark project in egypt and we will come back and talk a bit more about that later In parallel, we have also improved our corporate debt maturity profile, issued a new bond in November during the quarter. in parallel we have also improved our corporate debt maturity profile issued a new bond in november during the quarter We also paid down a term loan, and at the end of the quarter, at the end of the year, we have a very strong liquidity position of NOK 5.6 billion. we also paid down a term loan and at the end of the quarter at the end of the year we have a very strong liquidity position of nok 5.6 billion So with that, let me also then take you through the key elements of the power production segment. Last quarter, we generated 1 TWh, and this is in line with last year when we adjust for the divested assets. New projects contributed with 73 GWh. This is from Grootfontein in South Africa, and it's also from the Mmadinare project in Botswana. While when it comes to the Philippines, we generated slightly lower MWh, and this is due to hydrology. Revenues from power production amounted to around $1.1 billion, and this is broadly also in line with last year when we adjusted, adjusting for the divestments that we've done. And overall, this demonstrates the resilience and the predictability of our contracted generation portfolio, even as we continue to actively optimize our portfolio. So with that, let me also then take you through the key elements of the power production segment. so with that let me also then take you through the key elements of the power production segment Last quarter, we generated 1 TWh, and this is in line with last year when we adjust for the divested assets. last quarter we generated 1 twh and this is in line with last year when we adjust for the divested assets New projects contributed with 73 GWh. new projects contributed with 73 gwh This is from Grootfontein in South Africa, and it's also from the Mmadinare project in Botswana. this is from grootfontein in south africa and it's also from the mmadinare project in botswana While when it comes to the Philippines, we generated slightly lower MWh, and this is due to hydrology. while when it comes to the philippines we generated slightly lower mwh and this is due to hydrology Revenues from power production amounted to around $1.1 billion, and this is broadly also in line with last year when we adjusted, adjusting for the divestments that we've done. revenues from power production amounted to around $1.1 billion and this is broadly also in line with last year when we adjusted adjusting for the divestments that we've done And overall, this demonstrates the resilience and the predictability of our contracted generation portfolio, even as we continue to actively optimize our portfolio. and overall this demonstrates the resilience and the predictability of our contracted generation portfolio even as we continue to actively optimize our portfolio Now, a few words on Ukraine, and here, the ongoing war obviously represents a challenging environment, a challenging environment for operations. We own and operate 5 projects in Ukraine, in the central and the southern parts of Ukraine, with a total capacity of about 336 MW. During the fourth quarter, the substations and transformers related to 1 of our projects were targeted and damaged by a Russian drone attack. Our first priority in this situation is our employees in the country, and it's very good to know that those are unharmed, at least physically, after this drone attack. But the power plants, the power plant is disconnected due to the damage and is currently not delivering energy onto the grid. Now, a few words on Ukraine, and here, the ongoing war obviously represents a challenging environment, a challenging environment for operations. now a few words on ukraine and here the ongoing war obviously represents a challenging environment a challenging environment for operations We own and operate 5 projects in Ukraine, in the central and the southern parts of Ukraine, with a total capacity of about 336 MW. we own and operate 5 projects in ukraine in the central and the southern parts of ukraine with a total capacity of about 336 mw During the fourth quarter, the substations and transformers related to 1 of our projects were targeted and damaged by a Russian drone attack. mw during the fourth quarter the substations and transformers related to 1 of our projects were targeted and damaged by a russian drone attack Our first priority in this situation is our employees in the country, and it's very good to know that those are unharmed, at least physically, after this drone attack. our first priority in this situation is our employees in the country and it's very good to know that those are unharmed at least physically after this drone attack But the power plants, the power plant is disconnected due to the damage and is currently not delivering energy onto the grid. but the power plants the power plant is disconnected due to the damage and is currently not delivering energy onto the grid Ukrenergo, the state-owned utility, and our team is working very hard to repair the damages, and we are currently targeting to get the plant reconnected to the grid and start delivering energy again in the beginning of the second half of this year. This is obviously impacting the power generation from Ukraine during the year, and Hans Jakob will come back and comment on this also in the outlook for the year. So let me now talk about the Philippines. Here, we delivered yet another solid quarter. The Philippines continues to be a major financial contributor to the company. We generated 249 gigawatt hours in the quarter, and despite the slightly lower generation compared to last year, the financials from Philippines were better than last year. Overall, we reached net revenues of $403 million. Ukrenergo, the state-owned utility, and our team is working very hard to repair the damages, and we are currently targeting to get the plant reconnected to the grid and start delivering energy again in the beginning of the second half of this year. ukrenergo the state-owned utility and our team is working very hard to repair the damages and we are currently targeting to get the plant reconnected to the grid and start delivering energy again in the beginning of the second half of this year This is obviously impacting the power generation from Ukraine during the year, and Hans Jakob will come back and comment on this also in the outlook for the year. this is obviously impacting the power generation from ukraine during the year and hans jakob will come back and comment on this also in the outlook for the year So let me now talk about the Philippines. so let me now talk about the philippines Here, we delivered yet another solid quarter. here we delivered yet another solid quarter The Philippines continues to be a major financial contributor to the company. the philippines continues to be a major financial contributor to the company We generated 249 gigawatt hours in the quarter, and despite the slightly lower generation compared to last year, the financials from Philippines were better than last year. we generated 249 gigawatt hours in the quarter and despite the slightly lower generation compared to last year the financials from philippines were better than last year Overall, we reached net revenues of $403 million. overall we reached net revenues of $403 million This is up from $390 million, same quarter last year, and here we are now seeing the benefits of having a flexible asset portfolio and active trading operations in the country. This is now demonstrated based on the fact that, as we have several revenue streams and that we're able to capture attractive trading opportunities, and through this, we are able to deliver good and strong financial results, despite the fact that the hydrology is slightly lower in the quarter. We also continue to allocate a significant part of our capacity to the ancillary services market in the country. Again, based on the fact that we are seeing attractive revenue opportunities, earnings opportunities in that segment, and based on our ability with the flexible asset portfolio that we have. This is up from $390 million, same quarter last year, and here we are now seeing the benefits of having a flexible asset portfolio and active trading operations in the country. this is up from $390 million same quarter last year and here we are now seeing the benefits of having a flexible asset portfolio and active trading operations in the country This is now demonstrated based on the fact that, as we have several revenue streams and that we're able to capture attractive trading opportunities, and through this, we are able to deliver good and strong financial results, despite the fact that the hydrology is slightly lower in the quarter. this is now demonstrated based on the fact that as we have several revenue streams and that we're able to capture attractive trading opportunities and through this we are able to deliver good and strong financial results despite the fact that the hydrology is slightly lower in the quarter We also continue to allocate a significant part of our capacity to the ancillary services market in the country. we also continue to allocate a significant part of our capacity to the ancillary services market in the country Again, based on the fact that we are seeing attractive revenue opportunities, earnings opportunities in that segment, and based on our ability with the flexible asset portfolio that we have. again based on the fact that we are seeing attractive revenue opportunities earnings opportunities in that segment and based on our ability with the flexible asset portfolio that we have Prices in the quarter were also up, and additionally, we've been able to capture higher-than-average prices on our contracts, and this is also contributing to the financials. So in terms of EBITDA, that increased by NOK 31 million in the quarter to NOK 363 million. Then, in terms of construction, we currently have 1.5 gigawatts of solar and 700 megawatt hours of battery storage projects under construction in five different countries. Andreas is fixing that. In addition to this, we are also progressing well in our release platform, and we are also having a few projects in that platform being installed as we speak. Since last reporting, we've had a very good construction progress across the portfolio, and we have recorded NOK 2.3 billion in revenues and a gross margin of 14%, as I've already said. Prices in the quarter were also up, and additionally, we've been able to capture higher-than-average prices on our contracts, and this is also contributing to the financials. prices in the quarter were also up and additionally we've been able to capture higher-than-average prices on our contracts and this is also contributing to the financials So in terms of EBITDA, that increased by NOK 31 million in the quarter to NOK 363 million. so in terms of ebitda that increased by nok 31 million in the quarter to nok 363 million Then, in terms of construction, we currently have 1.5 gigawatts of solar and 700 megawatt hours of battery storage projects under construction in five different countries. then in terms of construction we currently have 1.5 gigawatts of solar and 700 megawatt hours of battery storage projects under construction in five different countries Andreas is fixing that. andreas is fixing that In addition to this, we are also progressing well in our release platform, and we are also having a few projects in that platform being installed as we speak. in addition to this we are also progressing well in our release platform and we are also having a few projects in that platform being installed as we speak Since last reporting, we've had a very good construction progress across the portfolio, and we have recorded NOK 2.3 billion in revenues and a gross margin of 14%, as I've already said. since last reporting we've had a very good construction progress across the portfolio and we have recorded nok 2.3 billion in revenues and a gross margin of 14% as i've already said The EBITDA for the D&C segment was $251 million, which is a very high level. Grootfontein in South Africa, and also the second phase of the Mmadinare project in Botswana, reached COD during the quarter and is now in operation. In Tunisia, we target COD for the Tozeur project and the Sidi Bouzid project by the end of the quarter, and for the solar project in Brazil, and also for our battery projects in the Philippines, we are expected to reach COD by the end of the first half of the year. When it comes to Mogobe in South Africa, our first battery project in South Africa. Okay. The EBITDA for the D&C segment was $251 million, which is a very high level. the ebitda for the d&c segment was $251 million which is a very high level Grootfontein in South Africa, and also the second phase of the Mmadinare project in Botswana, reached COD during the quarter and is now in operation. grootfontein in south africa and also the second phase of the mmadinare project in botswana reached cod during the quarter and is now in operation In Tunisia, we target COD for the Tozeur project and the Sidi Bouzid project by the end of the quarter, and for the solar project in Brazil, and also for our battery projects in the Philippines, we are expected to reach COD by the end of the first half of the year. in tunisia we target cod for the tozeur project and the sidi bouzid project by the end of the quarter and for the solar project in brazil and also for our battery projects in the philippines we are expected to reach cod by the end of the first half of the year When it comes to Mogobe in South Africa, our first battery project in South Africa. when it comes to mogobe in south africa our first battery project in south africa Okay. okay So when it comes to the solar project in Brazil and also the battery projects in the Philippines, we are expecting to have COD by the end of the first half. And then when it comes to Mogobe, our first standalone project, standalone BESS project in South Africa, we are, for this project, expecting to reach financials in the second half of this year. In general, I'm very pleased with the progress that we're seeing on the construction activities across our portfolio, and I'm very proud of the teams that are doing a very good job on this. At the end of the quarter, we have $1.8 billion in remaining contract revenues related to the projects that we currently have in construction, and we're continuing to expect to have a gross margin of 10%-12% related to these projects. So when it comes to the solar project in Brazil and also the battery projects in the Philippines, we are expecting to have COD by the end of the first half. so when it comes to the solar project in brazil and also the battery projects in the philippines we are expecting to have cod by the end of the first half And then when it comes to Mogobe, our first standalone project, standalone BESS project in South Africa, we are, for this project, expecting to reach financials in the second half of this year. and then when it comes to mogobe our first standalone project standalone bess project in south africa we are for this project expecting to reach financials in the second half of this year In general, I'm very pleased with the progress that we're seeing on the construction activities across our portfolio, and I'm very proud of the teams that are doing a very good job on this. in general i'm very pleased with the progress that we're seeing on the construction activities across our portfolio and i'm very proud of the teams that are doing a very good job on this At the end of the quarter, we have $1.8 billion in remaining contract revenues related to the projects that we currently have in construction, and we're continuing to expect to have a gross margin of 10%-12% related to these projects. at the end of the quarter we have $1.8 billion in remaining contract revenues related to the projects that we currently have in construction and we're continuing to expect to have a gross margin of 10%-12% related to these projects Beyond this, obviously, we continue to mature projects that we have in backlog, and we foresee that we're going to continue to have a high activity level in the construction segment going forward. Now, let me also take some time to appreciate our largest project to date, the Obelisk project. Total CapEx of this project is close to NOK 6 billion, and when it's finished, it will generate in the range of 3 TWh on an annual basis, and it will provide 1.3 million tons of CO2 emission reductions. It's a massive project, and it's being constructed at record pace. We have already completed phase one, which is including 50% of the solar capacity, 100% of the battery capacity, and obviously also a very large substation. And this is only about 15 months since we signed the PPA. Beyond this, obviously, we continue to mature projects that we have in backlog, and we foresee that we're going to continue to have a high activity level in the construction segment going forward. beyond this obviously we continue to mature projects that we have in backlog and we foresee that we're going to continue to have a high activity level in the construction segment going forward Now, let me also take some time to appreciate our largest project to date, the Obelisk project. now let me also take some time to appreciate our largest project to date the obelisk project Total CapEx of this project is close to NOK 6 billion, and when it's finished, it will generate in the range of 3 TWh on an annual basis, and it will provide 1.3 million tons of CO2 emission reductions. total capex of this project is close to nok 6 billion and when it's finished it will generate in the range of 3 twh on an annual basis and it will provide 1.3 million tons of co2 emission reductions It's a massive project, and it's being constructed at record pace. it's a massive project and it's being constructed at record pace We have already completed phase one, which is including 50% of the solar capacity, 100% of the battery capacity, and obviously also a very large substation. we have already completed phase one which is including 50% of the solar capacity 100% of the battery capacity and obviously also a very large substation And this is only about 15 months since we signed the PPA. and this is only about 15 months since we signed the ppa We are having about 5,000 people on site, and this team is installing in the range of 200,000 modules on a monthly basis. So we're working very hard to secure commercial operation for phase one ahead of schedule by the end of this quarter, and also accelerating the completion of phase two, and we're targeting to reach COD for phase two already this summer. And obviously, building this project, constructing this project, gives us a lot of very valuable experiences and learnings, and we will use these learnings when we are now moving forward also and preparing to start construction for the other projects in Egypt, like for instance, Egyptalum and also the Energy Valley project. I will now zoom out a bit and talk about our growth portfolio. We are having about 5,000 people on site, and this team is installing in the range of 200,000 modules on a monthly basis. we are having about 5,000 people on site and this team is installing in the range of 200,000 modules on a monthly basis So we're working very hard to secure commercial operation for phase one ahead of schedule by the end of this quarter, and also accelerating the completion of phase two, and we're targeting to reach COD for phase two already this summer. so we're working very hard to secure commercial operation for phase one ahead of schedule by the end of this quarter and also accelerating the completion of phase two and we're targeting to reach cod for phase two already this summer And obviously, building this project, constructing this project, gives us a lot of very valuable experiences and learnings, and we will use these learnings when we are now moving forward also and preparing to start construction for the other projects in Egypt, like for instance, Egyptalum and also the Energy Valley project. and obviously building this project constructing this project gives us a lot of very valuable experiences and learnings and we will use these learnings when we are now moving forward also and preparing to start construction for the other projects in egypt like for instance egyptalum and also the energy valley project I will now zoom out a bit and talk about our growth portfolio. i will now zoom out a bit and talk about our growth portfolio We have an all-time high backlog of 5.3 GW of generation capacity, and this is including projects in Egypt, in South Africa, in Tunisia, in Romania, and in Colombia. When the construction of these projects, including the ones in backlog, have been completed over the next few years, we will reach a total generating capacity of 11 GW. This is up 2.5 times relative to where we are today. In addition, behind this, we have a pipeline of 7.4 GW that obviously we will continue to mature and convert into backlog also over time. Our growth portfolio also includes battery storage, either in hybrid systems or as standalone storage systems. Here we have a backlog of 4.7 GWh in South Africa, Egypt, and the Philippines. We have an all-time high backlog of 5.3 GW of generation capacity, and this is including projects in Egypt, in South Africa, in Tunisia, in Romania, and in Colombia. we have an all-time high backlog of 5.3 gw of generation capacity and this is including projects in egypt in south africa in tunisia in romania and in colombia When the construction of these projects, including the ones in backlog, have been completed over the next few years, we will reach a total generating capacity of 11 GW. when the construction of these projects including the ones in backlog have been completed over the next few years we will reach a total generating capacity of 11 gw This is up 2.5 times relative to where we are today. this is up 2.5 times relative to where we are today In addition, behind this, we have a pipeline of 7.4 GW that obviously we will continue to mature and convert into backlog also over time. in addition behind this we have a pipeline of 7.4 gw that obviously we will continue to mature and convert into backlog also over time Our growth portfolio also includes battery storage, either in hybrid systems or as standalone storage systems. our growth portfolio also includes battery storage either in hybrid systems or as standalone storage systems Here we have a backlog of 4.7 GWh in South Africa, Egypt, and the Philippines. here we have a backlog of 4.7 gwh in south africa egypt and the philippines We have now chosen to show this portfolio separately, so that you can see also how this is growing over time, and we believe that there's going to also be significant growth opportunities in this space going forward. Let me now also turn at the end to a landmark agreement signed in Egypt, which is a 25-year PPA for 1.95 GW of solar and 3.9 GWh of battery capacity. So the Energy Valley project, as you will see on this page, includes two standalone BESS installations and one solar and battery hybrid facility. And part of the production from this hybrid facility will be used to provide 24/7 green base load power, and this is a first of its kind. The project will generate about 6 TWh when it is in operation. We have now chosen to show this portfolio separately, so that you can see also how this is growing over time, and we believe that there's going to also be significant growth opportunities in this space going forward. we have now chosen to show this portfolio separately so that you can see also how this is growing over time and we believe that there's going to also be significant growth opportunities in this space going forward Let me now also turn at the end to a landmark agreement signed in Egypt, which is a 25-year PPA for 1.95 GW of solar and 3.9 GWh of battery capacity. let me now also turn at the end to a landmark agreement signed in egypt which is a 25-year ppa for 1.95 gw of solar and 3.9 gwh of battery capacity So the Energy Valley project, as you will see on this page, includes two standalone BESS installations and one solar and battery hybrid facility. so the energy valley project as you will see on this page includes two standalone bess installations and one solar and battery hybrid facility And part of the production from this hybrid facility will be used to provide 24/7 green base load power, and this is a first of its kind. and part of the production from this hybrid facility will be used to provide 24/7 green base load power and this is a first of its kind The project will generate about 6 TWh when it is in operation. the project will generate about 6 twh when it is in operation It will provide about 2.4 million tons of CO2 reductions, and it will save Egypt $150 million on an annual basis in saved fuel costs related to the alternative, which is running their thermal power plants. $150 million on an annual basis. And with the signing of this agreement, we are cementing our position in Egypt as one of the leading players in renewable energy in the country, and we have a very strong team on the ground which is, which is driving this. And in total, we now have five large growth projects in Egypt across different technologies: solar, wind, batteries, and green hydrogen. These projects, they will generate substantial D&C revenues over the next few years as we move them through construction. It will provide about 2.4 million tons of CO2 reductions, and it will save Egypt $150 million on an annual basis in saved fuel costs related to the alternative, which is running their thermal power plants. $150 million on an annual basis. it will provide about 2.4 million tons of co2 reductions and it will save egypt $150 million on an annual basis in saved fuel costs related to the alternative which is running their thermal power plants $150 million on an annual basis And with the signing of this agreement, we are cementing our position in Egypt as one of the leading players in renewable energy in the country, and we have a very strong team on the ground which is, which is driving this. and with the signing of this agreement we are cementing our position in egypt as one of the leading players in renewable energy in the country and we have a very strong team on the ground which is which is driving this And in total, we now have five large growth projects in Egypt across different technologies: solar, wind, batteries, and green hydrogen. and in total we now have five large growth projects in egypt across different technologies solar wind batteries and green hydrogen These projects, they will generate substantial D&C revenues over the next few years as we move them through construction. these projects they will generate substantial d&c revenues over the next few years as we move them through construction On a longer-term basis, obviously, they will also generate predictable revenues in the power production segment related to the 25-year PPAs that we have for these projects. And finally, also, this portfolio will contribute to reduction of 5 million tons, 5 million tons of CO2 emissions. And just for reference, this is more than 10% of Norway's CO2 emissions on an annual basis, more than 10%. So we now focus on finalizing construction of Obelisk and securing partners and financing this portfolio with the aim to move this portfolio into construction by the end of this year. So with that, Hans Jakob, I will hand it over to you to take us through the financials. On a longer-term basis, obviously, they will also generate predictable revenues in the power production segment related to the 25-year PPAs that we have for these projects. on a longer-term basis obviously they will also generate predictable revenues in the power production segment related to the 25-year ppas that we have for these projects And finally, also, this portfolio will contribute to reduction of 5 million tons, 5 million tons of CO2 emissions. and finally also this portfolio will contribute to reduction of 5 million tons 5 million tons of co2 emissions And just for reference, this is more than 10% of Norway's CO2 emissions on an annual basis, more than 10%. and just for reference this is more than 10% of norway's co2 emissions on an annual basis more than 10% So we now focus on finalizing construction of Obelisk and securing partners and financing this portfolio with the aim to move this portfolio into construction by the end of this year. so we now focus on finalizing construction of obelisk and securing partners and financing this portfolio with the aim to move this portfolio into construction by the end of this year So with that, Hans Jakob, I will hand it over to you to take us through the financials. so with that hans jakob i will hand it over to you to take us through the financials

Speaker 3: Thank you, Terje. Is the microphone okay? Yeah. So it's been said before, but we are pleased to present strong results across the group, high D&C activity, and a good quarter in the Philippines. I'll walk you through the group financials and the performance of our operating segments, and I will also comment on capital structure and further improvements. Starting at group-level performance, the last three years has been a transition period with increased capital recycling and accelerated growth. The full year consolidated revenues was NOK 5.2 billion and EBITDA, NOK 4 billion. Our proportionate revenues was NOK 11 billion and EBITDA, NOK 4.6 billion, both positively impacted by the D&C segment. Looking at the quarter on group level, the all-time high D&C activity is driving proportionate revenue growth, positively impacting our group financials. Thank you, Terje. thank you terje Is the microphone okay? is the microphone okay Yeah. yeah So it's been said before, but we are pleased to present strong results across the group, high D&C activity, and a good quarter in the Philippines. so it's been said before but we are pleased to present strong results across the group high d&c activity and a good quarter in the philippines I'll walk you through the group financials and the performance of our operating segments, and I will also comment on capital structure and further improvements. i'll walk you through the group financials and the performance of our operating segments and i will also comment on capital structure and further improvements Starting at group-level performance, the last three years has been a transition period with increased capital recycling and accelerated growth. starting at group-level performance the last three years has been a transition period with increased capital recycling and accelerated growth The full year consolidated revenues was NOK 5.2 billion and EBITDA, NOK 4 billion. the full year consolidated revenues was nok 5.2 billion and ebitda nok 4 billion Our proportionate revenues was NOK 11 billion and EBITDA, NOK 4.6 billion, both positively impacted by the D&C segment. our proportionate revenues was nok 11 billion and ebitda nok 4.6 billion both positively impacted by the d&c segment Looking at the quarter on group level, the all-time high D&C activity is driving proportionate revenue growth, positively impacting our group financials. looking at the quarter on group level the all-time high d&c activity is driving proportionate revenue growth positively impacting our group financials Consolidated revenues was NOK 1 billion, compared to NOK 1.1 billion in the same quarter last year. EBITDA reached NOK 697 million, compared to NOK 816 million year-on-year. The reduction is mainly driven by divestments, which has been instrumental to our long-term strategy of funding growth and reducing debt. This will result in additional revenues from new projects and lower interest expenses and reduced debt. Our proportionate revenues was NOK 3.4 billion, compared to NOK 2.7 billion in the same quarter last year, and the proportionate EBITDA was NOK 1 billion, compared to NOK 1.4 billion, year-on-year. Now, let me take you through the segments. Starting with power production, which delivered revenues close to NOK 1.1 billion, compared to NOK 1.6 billion in the same quarter last year. Consolidated revenues was NOK 1 billion, compared to NOK 1.1 billion in the same quarter last year. consolidated revenues was nok 1 billion compared to nok 1.1 billion in the same quarter last year EBITDA reached NOK 697 million, compared to NOK 816 million year-on-year. ebitda reached nok 697 million compared to nok 816 million year-on-year The reduction is mainly driven by divestments, which has been instrumental to our long-term strategy of funding growth and reducing debt. the reduction is mainly driven by divestments which has been instrumental to our long-term strategy of funding growth and reducing debt This will result in additional revenues from new projects and lower interest expenses and reduced debt. this will result in additional revenues from new projects and lower interest expenses and reduced debt Our proportionate revenues was NOK 3.4 billion, compared to NOK 2.7 billion in the same quarter last year, and the proportionate EBITDA was NOK 1 billion, compared to NOK 1.4 billion, year-on-year. our proportionate revenues was nok 3.4 billion compared to nok 2.7 billion in the same quarter last year and the proportionate ebitda was nok 1 billion compared to nok 1.4 billion year-on-year Now, let me take you through the segments. now let me take you through the segments Starting with power production, which delivered revenues close to NOK 1.1 billion, compared to NOK 1.6 billion in the same quarter last year. starting with power production which delivered revenues close to nok 1.1 billion compared to nok 1.6 billion in the same quarter last year The reduction is mainly explained by the divestment gains of $300 million, booked in the fourth quarter last year. EBITDA was $842 million, and on a 12-month rolling basis, you can see stable development, adjusting for sales gains, as we are managing to offset the EBITDA from divested assets with new projects. The last 12 months, we have delivered $5.2 billion in revenues and $4.3 billion in EBITDA. Overall, we are very pleased with the value generated from our operating assets. In our development and construction segment, activity levels continue to increase. Proportionate revenues more than doubled to $2.3 billion, and EBITDA was $251 million, significantly up from the $51 million in the same quarter last year. The trend from the last 12 months confirms the long-term strength and scalability of our D&C business, underlying strong growth. The reduction is mainly explained by the divestment gains of $300 million, booked in the fourth quarter last year. the reduction is mainly explained by the divestment gains of $300 million booked in the fourth quarter last year EBITDA was $842 million, and on a 12-month rolling basis, you can see stable development, adjusting for sales gains, as we are managing to offset the EBITDA from divested assets with new projects. ebitda was $842 million and on a 12-month rolling basis you can see stable development adjusting for sales gains as we are managing to offset the ebitda from divested assets with new projects The last 12 months, we have delivered $5.2 billion in revenues and $4.3 billion in EBITDA. the last 12 months we have delivered $5.2 billion in revenues and $4.3 billion in ebitda Overall, we are very pleased with the value generated from our operating assets. overall we are very pleased with the value generated from our operating assets In our development and construction segment, activity levels continue to increase. in our development and construction segment activity levels continue to increase Proportionate revenues more than doubled to $2.3 billion, and EBITDA was $251 million, significantly up from the $51 million in the same quarter last year. proportionate revenues more than doubled to $2.3 billion and ebitda was $251 million significantly up from the $51 million in the same quarter last year The trend from the last 12 months confirms the long-term strength and scalability of our D&C business, underlying strong growth. the trend from the last 12 months confirms the long-term strength and scalability of our d&c business underlying strong growth D&C revenues the last 12 months have reached NOK 5.8 billion, with a steady increase over the last quarters, five quarters in a row. The rolling EBITDA ended at 462 million, with contribution from high-margin projects and disciplined cost control. The increasing trend reflects higher activity levels across several geographies, with Obelisk in Egypt and Mogobe in South Africa being in the forefront in this quarter. With a strong backlog, including eight projects in five countries expected to start construction in the first half of this year, we expect D&C to remain a key engine on our continued profitable growth. At the end of the quarter, we had available liquidity of NOK 5.6 billion. Let me explain some of the main movements. D&C revenues the last 12 months have reached NOK 5.8 billion, with a steady increase over the last quarters, five quarters in a row. d&c revenues the last 12 months have reached nok 5.8 billion with a steady increase over the last quarters five quarters in a row The rolling EBITDA ended at 462 million, with contribution from high-margin projects and disciplined cost control. the rolling ebitda ended at 462 million with contribution from high-margin projects and disciplined cost control The increasing trend reflects higher activity levels across several geographies, with Obelisk in Egypt and Mogobe in South Africa being in the forefront in this quarter. the increasing trend reflects higher activity levels across several geographies with obelisk in egypt and mogobe in south africa being in the forefront in this quarter With a strong backlog, including eight projects in five countries expected to start construction in the first half of this year, we expect D&C to remain a key engine on our continued profitable growth. with a strong backlog including eight projects in five countries expected to start construction in the first half of this year we expect d&c to remain a key engine on our continued profitable growth At the end of the quarter, we had available liquidity of NOK 5.6 billion. at the end of the quarter we had available liquidity of nok 5.6 billion Let me explain some of the main movements. let me explain some of the main movements We received NOK 631 million in distributions from power plants, had positive working capital movements of NOK 596 million, mainly related to milestone payments for Obelisk. We invested net NOK 220 million in growth projects and paid NOK 130 million of interest and reduced our corporate debt by NOK 73 million. The EBITDA from the D&C covered investments in the quarter, which is a confirmation of our robust business model, and the RCF is currently undrawn. We continue to strengthen our capital structure. Net corporate debt was reduced to NOK 3.4 billion, down from 5.6 in the second and 4.3 in the third quarter. The reduction was mainly driven by the change in cash on NOK 900 million. We also repaid the outstanding term loan with the proceeds from the 1 billion NOK bond. We received NOK 631 million in distributions from power plants, had positive working capital movements of NOK 596 million, mainly related to milestone payments for Obelisk. we received nok 631 million in distributions from power plants had positive working capital movements of nok 596 million mainly related to milestone payments for obelisk We invested net NOK 220 million in growth projects and paid NOK 130 million of interest and reduced our corporate debt by NOK 73 million. we invested net nok 220 million in growth projects and paid nok 130 million of interest and reduced our corporate debt by nok 73 million The EBITDA from the D&C covered investments in the quarter, which is a confirmation of our robust business model, and the RCF is currently undrawn. the ebitda from the d&c covered investments in the quarter which is a confirmation of our robust business model and the rcf is currently undrawn We continue to strengthen our capital structure. we continue to strengthen our capital structure Net corporate debt was reduced to NOK 3.4 billion, down from 5.6 in the second and 4.3 in the third quarter. net corporate debt was reduced to nok 3.4 billion down from 5.6 in the second and 4.3 in the third quarter The reduction was mainly driven by the change in cash on NOK 900 million. the reduction was mainly driven by the change in cash on nok 900 million We also repaid the outstanding term loan with the proceeds from the 1 billion NOK bond. we also repaid the outstanding term loan with the proceeds from the 1 billion nok bond On project level, net debt increased by NOK 800 million to NOK 16.7 billion, and the project debt in operation increased by NOK 2.3 billion, as Grootfontein in South Africa and Mmadinare project in Botswana debt moved to operation after COD, and the net debt for project under construction was reduced by NOK 1.4 billion. Now, the outlook for the year. So commenting on the 2026 outlook, I will start with the full-year estimate of power production between 5.2 and 5.6 TWh. Our estimated full-year EBITDA is in the range of NOK 3.8 billion-NOK 4.1 billion. And let me explain some of the main items affecting the guidance compared to the NOK 4.3 billion we delivered in the full year last year. On project level, net debt increased by NOK 800 million to NOK 16.7 billion, and the project debt in operation increased by NOK 2.3 billion, as Grootfontein in South Africa and Mmadinare project in Botswana debt moved to operation after COD, and the net debt for project under construction was reduced by NOK 1.4 billion. on project level net debt increased by nok 800 million to nok 16.7 billion and the project debt in operation increased by nok 2.3 billion as grootfontein in south africa and mmadinare project in botswana debt moved to operation after cod and the net debt for project under construction was reduced by nok 1.4 billion Now, the outlook for the year. now the outlook for the year So commenting on the 2026 outlook, I will start with the full-year estimate of power production between 5.2 and 5.6 TWh. so commenting on the 2026 outlook i will start with the full-year estimate of power production between 5.2 and 5.6 twh Our estimated full-year EBITDA is in the range of NOK 3.8 billion-NOK 4.1 billion. our estimated full-year ebitda is in the range of nok 3.8 billion-nok 4.1 billion And let me explain some of the main items affecting the guidance compared to the NOK 4.3 billion we delivered in the full year last year. and let me explain some of the main items affecting the guidance compared to the nok 4.3 billion we delivered in the full year last year Last year, we reported $500 million in divestment gains and operational EBITDA related to Uganda, Vietnam, which we sold during the year. We had $200 million of retroactive payments for tariff adjustments in the Philippines and Pakistan. In this year, we expect reduced EBITDA from Ukraine due to the repair of one of our plants and lower payment levels for the remainder of the portfolio in the country. Lower EBITDA from the Philippines and Laos due to the normal hydrology expected, compared to the high levels we saw in 2025. These effects will be partly offset by contributions from new projects that are starting operations during the year and other operational improvements. Last year, we reported $500 million in divestment gains and operational EBITDA related to Uganda, Vietnam, which we sold during the year. last year we reported $500 million in divestment gains and operational ebitda related to uganda vietnam which we sold during the year We had $200 million of retroactive payments for tariff adjustments in the Philippines and Pakistan. we had $200 million of retroactive payments for tariff adjustments in the philippines and pakistan In this year, we expect reduced EBITDA from Ukraine due to the repair of one of our plants and lower payment levels for the remainder of the portfolio in the country. in this year we expect reduced ebitda from ukraine due to the repair of one of our plants and lower payment levels for the remainder of the portfolio in the country Lower EBITDA from the Philippines and Laos due to the normal hydrology expected, compared to the high levels we saw in 2025. lower ebitda from the philippines and laos due to the normal hydrology expected compared to the high levels we saw in 2025 These effects will be partly offset by contributions from new projects that are starting operations during the year and other operational improvements. these effects will be partly offset by contributions from new projects that are starting operations during the year and other operational improvements For the first quarter, we expect a total power production between 950 and 1,150 GWh, EBITDA in the Philippines of $180 million-$240 million, based on the normal hydrology and strong contributions from ancillary services. In our D&C segment, we have $1.8 billion remaining contract value and a gross margin estimate of 10%-12% on average across the portfolio or project under construction. For corporate, we expect a full year EBITDA of -$125 million to -$135 million, and these estimates reflects a strong base of operating assets, high construction activity, and healthy cost control. By that, I invite you back, Terje, to take us through the summary. For the first quarter, we expect a total power production between 950 and 1,150 GWh, EBITDA in the Philippines of $180 million-$240 million, based on the normal hydrology and strong contributions from ancillary services. for the first quarter we expect a total power production between 950 and 1,150 gwh ebitda in the philippines of $180 million-$240 million based on the normal hydrology and strong contributions from ancillary services In our D&C segment, we have $1.8 billion remaining contract value and a gross margin estimate of 10%-12% on average across the portfolio or project under construction. in our d&c segment we have $1.8 billion remaining contract value and a gross margin estimate of 10%-12% on average across the portfolio or project under construction For corporate, we expect a full year EBITDA of -$125 million to -$135 million, and these estimates reflects a strong base of operating assets, high construction activity, and healthy cost control. for corporate we expect a full year ebitda of -$125 million to -$135 million and these estimates reflects a strong base of operating assets high construction activity and healthy cost control By that, I invite you back, Terje, to take us through the summary. by that i invite you back terje to take us through the summary

Speaker 4: Thank you, Hans Jakob. So to sum up, 2025 was a very good year for Scatec. We've had good financial performance, high construction activity during the year. We have significantly increased the pipeline and backlog during the year, and we have also strengthened the balance sheet. I like to think that 2025 was a transformative year for Scatec. We also launched our new targets and our strategic priorities during our Q3 presentation. And in 2026, in line with this, we will focus on strong operational performance, execution of our significant growth portfolio, divestment of non-core assets, and also take further steps in terms of deleveraging our corporate balance sheet. I think it's going to be very exciting and a very active and hectic year. Thank you very much. And now we will move to questions. Thank you, Hans Jakob. thank you hans jakob So to sum up, 2025 was a very good year for Scatec. so to sum up 2025 was a very good year for scatec We've had good financial performance, high construction activity during the year. we've had good financial performance high construction activity during the year We have significantly increased the pipeline and backlog during the year, and we have also strengthened the balance sheet. we have significantly increased the pipeline and backlog during the year and we have also strengthened the balance sheet I like to think that 2025 was a transformative year for Scatec. i like to think that 2025 was a transformative year for scatec We also launched our new targets and our strategic priorities during our Q3 presentation. we also launched our new targets and our strategic priorities during our q3 presentation And in 2026, in line with this, we will focus on strong operational performance, execution of our significant growth portfolio, divestment of non-core assets, and also take further steps in terms of deleveraging our corporate balance sheet. and in 2026 in line with this we will focus on strong operational performance execution of our significant growth portfolio divestment of non-core assets and also take further steps in terms of deleveraging our corporate balance sheet I think it's going to be very exciting and a very active and hectic year. i think it's going to be very exciting and a very active and hectic year Thank you very much. thank you very much And now we will move to questions. and now we will move to questions

Speaker 5: Thank you, Terje and Hans Jakob. Over to the Q&A. We will, as usual, start with the audience in the room, and then we will take some online questions. So if you want to ask a question, just raise your hand. Thank you, Terje and Hans Jakob. thank you terje and hans jakob Over to the Q&A. over to the q&a We will, as usual, start with the audience in the room, and then we will take some online questions. we will as usual start with the audience in the room and then we will take some online questions So if you want to ask a question, just raise your hand. so if you want to ask a question just raise your hand

Speaker 1: Thank you. Anders from SEB. In your guidance for 2026 on power production, you provided some soft comments about the changes in Ukraine, but could you be more explicit in how much the contribution in Ukraine is expected to be compared with 2025 levels? Some rough indication. Thank you. thank you Anders from SEB. anders from seb In your guidance for 2026 on power production, you provided some soft comments about the changes in Ukraine, but could you be more explicit in how much the contribution in Ukraine is expected to be compared with 2025 levels? in your guidance for 2026 on power production you provided some soft comments about the changes in ukraine but could you be more explicit in how much the contribution in ukraine is expected to be compared with 2025 levels Some rough indication. some rough indication

Speaker 3: Yes. I think in one of Terje's graphs, he showed the impact in the fourth quarter last year of $67 million. I think it's also in the fact sheet. Looking at the outlook, as Terje said, the team is working incredibly hard to reinstall the capacity, and it's anticipated to take until summer. And we haven't provided a figure, but in ballpark, around $100 million. Yes. yes I think in one of Terje's graphs, he showed the impact in the fourth quarter last year of $67 million. i think in one of terje's graphs he showed the impact in the fourth quarter last year of $67 million I think it's also in the fact sheet. i think it's also in the fact sheet Looking at the outlook, as Terje said, the team is working incredibly hard to reinstall the capacity, and it's anticipated to take until summer. looking at the outlook as terje said the team is working incredibly hard to reinstall the capacity and it's anticipated to take until summer And we haven't provided a figure, but in ballpark, around $100 million. and we haven't provided a figure but in ballpark around $100 million

Speaker 1: Okay, so, but you also made a comment about somewhat lower payments from Ukraine. Okay, so, but you also made a comment about somewhat lower payments from Ukraine. okay so but you also made a comment about somewhat lower payments from ukraine

Speaker 3: Lower payment levels that Terje is very much aware of, and as the rest of us. We have basically had very high, higher than expected payment levels last year. So starting the year with a more cautious approach to more normal as expected payment levels is a fair assumption. Lower payment levels that Terje is very much aware of, and as the rest of us. lower payment levels that terje is very much aware of and as the rest of us We have basically had very high, higher than expected payment levels last year. we have basically had very high higher than expected payment levels last year So starting the year with a more cautious approach to more normal as expected payment levels is a fair assumption. so starting the year with a more cautious approach to more normal as expected payment levels is a fair assumption

Speaker 1: So if I just to summarize, the baseline should be somewhat lower and roughly $100 million below the baseline for the first half? So if I just to summarize, the baseline should be somewhat lower and roughly $100 million below the baseline for the first half? so if i just to summarize the baseline should be somewhat lower and roughly $100 million below the baseline for the first half

Speaker 3: Yeah. Yeah. yeah

Speaker 1: Okay, thank you. I have another question as well, if I may. In the development and construction segment, I appreciate that you're progressing projects and are trying to sustain activity also in the first half, but there are some financial closures which needs to be in place for that to happen. How should we think about the first half in D&C, upon completion of the projects currently under construction, the $1.8 billion? Okay, thank you. okay thank you I have another question as well, if I may. i have another question as well if i may In the development and construction segment, I appreciate that you're progressing projects and are trying to sustain activity also in the first half, but there are some financial closures which needs to be in place for that to happen. in the development and construction segment i appreciate that you're progressing projects and are trying to sustain activity also in the first half but there are some financial closures which needs to be in place for that to happen How should we think about the first half in D&C, upon completion of the projects currently under construction, the $1.8 billion? how should we think about the first half in d&c upon completion of the projects currently under construction the $1.8 billion

Speaker 4: Your question is, what is going to come potentially in addition? Your question is, what is going to come potentially in addition? your question is what is going to come potentially in addition

Speaker 1: Yeah, or how quickly? Is that a second half event, or are you still comfortable with the commencement of construction, as you indicated in the past, during the first half, for a number of reasons? Yeah, or how quickly? yeah or how quickly Is that a second half event, or are you still comfortable with the commencement of construction, as you indicated in the past, during the first half, for a number of reasons? is that a second half event or are you still comfortable with the commencement of construction as you indicated in the past during the first half for a number of reasons

Speaker 4: Yeah, I mean, we're typically not commenting on specific dates or exactly sort of when the projects in our backlog are going to come into to financial close and start of construction. But we see that sort of across the backlog that we currently have, there are also some projects that we anticipate will come into to construction, reach financial close and come into construction the first half of the year. Yeah, I mean, we're typically not commenting on specific dates or exactly sort of when the projects in our backlog are going to come into to financial close and start of construction. yeah i mean we're typically not commenting on specific dates or exactly sort of when the projects in our backlog are going to come into to financial close and start of construction But we see that sort of across the backlog that we currently have, there are also some projects that we anticipate will come into to construction, reach financial close and come into construction the first half of the year. but we see that sort of across the backlog that we currently have there are also some projects that we anticipate will come into to construction reach financial close and come into construction the first half of the year

Speaker 1: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 2: Thank you. Andreas Nygård, Nordea. You have huge projects now going on in Egypt. Should we assume that you can continue to originate 2-3 gigawatts of projects annually in Egypt? Thank you. thank you Andreas Nygård, Nordea. andreas nygård nordea You have huge projects now going on in Egypt. you have huge projects now going on in egypt Should we assume that you can continue to originate 2-3 gigawatts of projects annually in Egypt? should we assume that you can continue to originate 2-3 gigawatts of projects annually in egypt

Speaker 4: I think now, I mean, as we went through here, we now have five significant projects in Egypt that we're going to focus on securing financing, bringing in investors, bringing to financial close, and start construction during this year. And I think that's going to be a main priority for the year. There's still significant more opportunities in Egypt related to renewable energy. Renewable energy makes sense in Egypt. It's basically saving cost related to the alternative sources of power generation. So, and Egypt is trying to accelerate their program for reaching their targets when it comes to renewable energy in the power mix. They had certain targets. I think it's 42% by 2035. They took it back to 2030, and now they're trying to reach it even earlier. In that context, and based on our position in Egypt, we see more opportunities in Egypt. I think now, I mean, as we went through here, we now have five significant projects in Egypt that we're going to focus on securing financing, bringing in investors, bringing to financial close, and start construction during this year. i think now i mean as we went through here we now have five significant projects in egypt that we're going to focus on securing financing bringing in investors bringing to financial close and start construction during this year And I think that's going to be a main priority for the year. and i think that's going to be a main priority for the year There's still significant more opportunities in Egypt related to renewable energy. there's still significant more opportunities in egypt related to renewable energy Renewable energy makes sense in Egypt. renewable energy makes sense in egypt It's basically saving cost related to the alternative sources of power generation. it's basically saving cost related to the alternative sources of power generation So, and Egypt is trying to accelerate their program for reaching their targets when it comes to renewable energy in the power mix. so and egypt is trying to accelerate their program for reaching their targets when it comes to renewable energy in the power mix They had certain targets. they had certain targets I think it's 42% by 2035. i think it's 42% by 2035 They took it back to 2030, and now they're trying to reach it even earlier. they took it back to 2030 and now they're trying to reach it even earlier In that context, and based on our position in Egypt, we see more opportunities in Egypt. in that context and based on our position in egypt we see more opportunities in egypt

Speaker 2: Okay, that's very clear and very, very nice to hear. But this scale of projects, could you find it outside of Egypt, or is Egypt quite special right now in terms of the scale of the projects? Could you see 2 gigawatt projects in South Africa, for instance? Okay, that's very clear and very, very nice to hear. okay that's very clear and very very nice to hear But this scale of projects, could you find it outside of Egypt, or is Egypt quite special right now in terms of the scale of the projects? but this scale of projects could you find it outside of egypt or is egypt quite special right now in terms of the scale of the projects Could you see 2 gigawatt projects in South Africa, for instance? could you see 2 gigawatt projects in south africa for instance

Speaker 4: Yeah, I do think you could also see projects at that scale also in, in South Africa, but obviously it also depends a bit on how the, the regulations are developing. But I think as, as the power sector also in South Africa will continue to be deregulated, we will also see more opportunities to do corporate PPAs, and to build out large portfolio of projects that can basically sell energy to more corporate offtakers. So I think that's a development that we will see, and then we will obviously look for developing larger clusters of projects also in, in South Africa. So there is also potential for larger projects in South Africa. Yeah, I do think you could also see projects at that scale also in, in South Africa, but obviously it also depends a bit on how the, the regulations are developing. yeah i do think you could also see projects at that scale also in in south africa but obviously it also depends a bit on how the the regulations are developing But I think as, as the power sector also in South Africa will continue to be deregulated, we will also see more opportunities to do corporate PPAs, and to build out large portfolio of projects that can basically sell energy to more corporate offtakers. but i think as as the power sector also in south africa will continue to be deregulated we will also see more opportunities to do corporate ppas and to build out large portfolio of projects that can basically sell energy to more corporate offtakers So I think that's a development that we will see, and then we will obviously look for developing larger clusters of projects also in, in South Africa. so i think that's a development that we will see and then we will obviously look for developing larger clusters of projects also in in south africa So there is also potential for larger projects in South Africa. so there is also potential for larger projects in south africa

Speaker 2: So, in summary, the activity level you're expecting in 2026 and 2027, that rate could likely just continue in 2028, 2029, and for eternity? So, in summary, the activity level you're expecting in 2026 and 2027, that rate could likely just continue in 2028, 2029, and for eternity? so in summary the activity level you're expecting in 2026 and 2027 that rate could likely just continue in 2028 2029 and for eternity

Speaker 4: Let me answer your question like this. I continue, or we continue to see that renewable energy becomes more and more competitive in the markets where we operate. With batteries, it becomes more flexible. It can provide baseload green power. And in many of the markets where we operate, we are the countries are, in principle, saving money, reducing alternative costs of power generation from implementing renewables. So I don't, I don't see a reason why the current pace in the industry is not going to continue. And I think based on everything that we are currently doing and the track record capabilities of the organization that we have, I think that we are in a good position to capture part of that growth. Let me answer your question like this. let me answer your question like this I continue, or we continue to see that renewable energy becomes more and more competitive in the markets where we operate. i continue or we continue to see that renewable energy becomes more and more competitive in the markets where we operate With batteries, it becomes more flexible. with batteries it becomes more flexible It can provide baseload green power. it can provide baseload green power And in many of the markets where we operate, we are the countries are, in principle, saving money, reducing alternative costs of power generation from implementing renewables. and in many of the markets where we operate we are the countries are in principle saving money reducing alternative costs of power generation from implementing renewables So I don't, I don't see a reason why the current pace in the industry is not going to continue. so i don't i don't see a reason why the current pace in the industry is not going to continue And I think based on everything that we are currently doing and the track record capabilities of the organization that we have, I think that we are in a good position to capture part of that growth. and i think based on everything that we are currently doing and the track record capabilities of the organization that we have i think that we are in a good position to capture part of that growth

Speaker 2: Okay, that's it from me. Thank you. Okay, that's it from me. okay that's it from me Thank you. thank you

Speaker 5: Okay, thank you. We have a couple of questions from our, online listeners as well. We can start with Jørgen Lande from Danske Bank. "Good morning. In terms of recent movements in input costs, like silver and copper, can you comment on how this potentially has impacted the progress of reaching FID? Okay, thank you. okay thank you We have a couple of questions from our, online listeners as well. we have a couple of questions from our online listeners as well We can start with Jørgen Lande from Danske Bank. "Good morning. we can start with jørgen lande from danske bank "good morning In terms of recent movements in input costs, like silver and copper, can you comment on how this potentially has impacted the progress of reaching FID? in terms of recent movements in input costs like silver and copper can you comment on how this potentially has impacted the progress of reaching fid

Speaker 4: I think there's a couple of things happening in the industry. Some common prices are going up. The VAT rebate in China has been removed, or is being removed over time related to panels and batteries. On the other side, we also see that other components that we are using, we are able to achieve savings. And the things that are happening in this industry is obviously not. It doesn't come as a surprise to us. I think there's a couple of things happening in the industry. i think there's a couple of things happening in the industry Some common prices are going up. some common prices are going up The VAT rebate in China has been removed, or is being removed over time related to panels and batteries. the vat rebate in china has been removed or is being removed over time related to panels and batteries On the other side, we also see that other components that we are using, we are able to achieve savings. on the other side we also see that other components that we are using we are able to achieve savings And the things that are happening in this industry is obviously not. and the things that are happening in this industry is obviously not It doesn't come as a surprise to us. it doesn't come as a surprise to us So we don't see that any of these things that are happening in the industry will have any significant impact on where we will be able to reach FID and take financial close and start construction of the projects that we currently have in the backlog. We will obviously continue to be very disciplined in terms of our hurdle rates, in terms of making sure that all the projects that we are doing are value creating for us and our shareholders. But based on what we are currently seeing, we see that sort of the changes in the industry is manageable and not all surprising. So we don't see that any of these things that are happening in the industry will have any significant impact on where we will be able to reach FID and take financial close and start construction of the projects that we currently have in the backlog. so we don't see that any of these things that are happening in the industry will have any significant impact on where we will be able to reach fid and take financial close and start construction of the projects that we currently have in the backlog We will obviously continue to be very disciplined in terms of our hurdle rates, in terms of making sure that all the projects that we are doing are value creating for us and our shareholders. we will obviously continue to be very disciplined in terms of our hurdle rates in terms of making sure that all the projects that we are doing are value creating for us and our shareholders But based on what we are currently seeing, we see that sort of the changes in the industry is manageable and not all surprising. but based on what we are currently seeing we see that sort of the changes in the industry is manageable and not all surprising

Speaker 5: Thank you. One question from Helene Brøndbo from DNB Markets. "Can you shed some more light on the status of your ongoing asset rotation program? Thank you. thank you One question from Helene Brøndbo from DNB Markets. "Can you shed some more light on the status of your ongoing asset rotation program? one question from helene brøndbo from dnb markets "can you shed some more light on the status of your ongoing asset rotation program

Speaker 3: Yeah, that's the one we are not sharing a lot of detail on the, on, announcing transactions. What we have said is, of course, that we have clear, ambitious targets, another $3.4 billion proceeds to 2030. This is within a time frame which should be manageable, and it's, main focus on the, on the non-core. It's also reaching, certain ownership stakes deliberately on, on project, carefully timed. So we have discussions ongoing, and we are, in terms of our long-term plan, according to plan. Yeah, that's the one we are not sharing a lot of detail on the, on, announcing transactions. yeah that's the one we are not sharing a lot of detail on the on announcing transactions What we have said is, of course, that we have clear, ambitious targets, another $3.4 billion proceeds to 2030. what we have said is of course that we have clear ambitious targets another $3.4 billion proceeds to 2030 This is within a time frame which should be manageable, and it's, main focus on the, on the non-core. this is within a time frame which should be manageable and it's main focus on the on the non-core It's also reaching, certain ownership stakes deliberately on, on project, carefully timed. it's also reaching certain ownership stakes deliberately on on project carefully timed So we have discussions ongoing, and we are, in terms of our long-term plan, according to plan. so we have discussions ongoing and we are in terms of our long-term plan according to plan

Speaker 5: Thank you. Helene also asked about the input costs. I think we have covered that. Another one from Helene: "To what extent can we expect the, the solid D&C gross margin in Q4 to be repeated? Thank you. thank you Helene also asked about the input costs. helene also asked about the input costs I think we have covered that. i think we have covered that Another one from Helene: "To what extent can we expect the, the solid D&C gross margin in Q4 to be repeated? another one from helene "to what extent can we expect the the solid d&c gross margin in q4 to be repeated

Speaker 4: Yeah, here, I mean, we have commented on that in our outlook, and we're saying that with regards to the $1.8 billion that we have remaining in construction revenues or contracts, we are expecting, and we are indicating that we will continue to reach in the range of 10%-12% gross margin on those contracts. Yeah, here, I mean, we have commented on that in our outlook, and we're saying that with regards to the $1.8 billion that we have remaining in construction revenues or contracts, we are expecting, and we are indicating that we will continue to reach in the range of 10%-12% gross margin on those contracts. yeah here i mean we have commented on that in our outlook and we're saying that with regards to the $1.8 billion that we have remaining in construction revenues or contracts we are expecting and we are indicating that we will continue to reach in the range of 10%-12% gross margin on those contracts

Speaker 5: Thank you. Another one from Jørgen Lande, Danske Bank. You guide 2026 power production to a midpoint of 5.4 TWh, which is higher than the midpoint of consensus, while EBITDA implies a very soft, a softer margin. Can you comment on how you think about power production EBITDA in 2026? Thank you. thank you Another one from Jørgen Lande, Danske Bank. another one from jørgen lande danske bank You guide 2026 power production to a midpoint of 5.4 TWh, which is higher than the midpoint of consensus, while EBITDA implies a very soft, a softer margin. you guide 2026 power production to a midpoint of 5.4 twh which is higher than the midpoint of consensus while ebitda implies a very soft a softer margin Can you comment on how you think about power production EBITDA in 2026? can you comment on how you think about power production ebitda in 2026

Speaker 3: Yeah. So I understand, I think I understand at least where Jørgen is coming from. So is there a misalignment on the EBITDA side? And it has to do with the composition or the contribution. So I think we have to stick to the guidance that we have provided today, and $3.8-$4.1 is explained also in contrast to last year, the one-offs. Any divestments is, of course, a potential deviation, but also the impact and the pace of the new projects coming in. And I think it feels at least a bit special for us, taking the development into account. Kenhardt and then doubling to Obelisk, and then we have Energy Valley. But we're not pre-announcing anything. Yeah. yeah So I understand, I think I understand at least where Jørgen is coming from. so i understand i think i understand at least where jørgen is coming from So is there a misalignment on the EBITDA side? so is there a misalignment on the ebitda side And it has to do with the composition or the contribution. and it has to do with the composition or the contribution So I think we have to stick to the guidance that we have provided today, and $3.8-$4.1 is explained also in contrast to last year, the one-offs. so i think we have to stick to the guidance that we have provided today and $3.8-$4.1 is explained also in contrast to last year the one-offs Any divestments is, of course, a potential deviation, but also the impact and the pace of the new projects coming in. any divestments is of course a potential deviation but also the impact and the pace of the new projects coming in And I think it feels at least a bit special for us, taking the development into account. and i think it feels at least a bit special for us taking the development into account Kenhardt and then doubling to Obelisk, and then we have Energy Valley. kenhardt and then doubling to obelisk and then we have energy valley But we're not pre-announcing anything. but we're not pre-announcing anything We just signed a PPA, but we are working very hard to mature this project, and that is, of course, a significant potential contribution. How this is forecasted, I think we have to stick to professional secrets. We just signed a PPA, but we are working very hard to mature this project, and that is, of course, a significant potential contribution. we just signed a ppa but we are working very hard to mature this project and that is of course a significant potential contribution How this is forecasted, I think we have to stick to professional secrets. how this is forecasted i think we have to stick to professional secrets

Speaker 5: Thank you. We have some question from Anis Zgaya, from Oddo BHF. One on Ukraine, I think we covered that one. Another one on the Philippines. You show sustained contribution from ancillary services and a favorable water fee settlement in 2025. How should we think about AS, ancillary services, pricing, and volumes in 2026 versus 2025? And what's your assumption for a hydrology normalization embedded in the guidance? Thank you. thank you We have some question from Anis Zgaya, from Oddo BHF. we have some question from anis zgaya from oddo bhf One on Ukraine, I think we covered that one. one on ukraine i think we covered that one Another one on the Philippines. another one on the philippines You show sustained contribution from ancillary services and a favorable water fee settlement in 2025. you show sustained contribution from ancillary services and a favorable water fee settlement in 2025 How should we think about AS, ancillary services, pricing, and volumes in 2026 versus 2025? how should we think about as ancillary services pricing and volumes in 2026 versus 2025 And what's your assumption for a hydrology normalization embedded in the guidance? and what's your assumption for a hydrology normalization embedded in the guidance

Speaker 4: I think when it comes to the ancillary services market, there are two elements of the ancillary services revenues that we are currently generating. It's partly related to a contract that was secured a couple of years ago, where we have very predictable revenues. And that contract is representing maybe around 50% of the volumes that we are typically seeing in that segment. And in general, when it comes to the pricing, on a short, medium-term basis, I mean, it's very difficult to provide input and outlook in terms of prices, but we don't see a reason on a short, medium-term basis that the prices in the ancillary services market is going to change. I think when it comes to the ancillary services market, there are two elements of the ancillary services revenues that we are currently generating. i think when it comes to the ancillary services market there are two elements of the ancillary services revenues that we are currently generating It's partly related to a contract that was secured a couple of years ago, where we have very predictable revenues. it's partly related to a contract that was secured a couple of years ago where we have very predictable revenues And that contract is representing maybe around 50% of the volumes that we are typically seeing in that segment. and that contract is representing maybe around 50% of the volumes that we are typically seeing in that segment And in general, when it comes to the pricing, on a short, medium-term basis, I mean, it's very difficult to provide input and outlook in terms of prices, but we don't see a reason on a short, medium-term basis that the prices in the ancillary services market is going to change. and in general when it comes to the pricing on a short medium-term basis i mean it's very difficult to provide input and outlook in terms of prices but we don't see a reason on a short medium-term basis that the prices in the ancillary services market is going to change

Speaker 3: Yeah, and on normal hydrology, it's just that, when you use these data for up to ten-year period, you see variations. And last year, I think we agreed that it was above normal hydrology, and- Yeah, and on normal hydrology, it's just that, when you use these data for up to ten-year period, you see variations. yeah and on normal hydrology it's just that when you use these data for up to ten-year period you see variations And last year, I think we agreed that it was above normal hydrology, and- and last year i think we agreed that it was above normal hydrology and-

Speaker 4: Yeah. Yeah. yeah

Speaker 3: It's a bit hard to start the year without normal hydrology as an assumption. So that's where we start off, just being transparent about the relative change. It's a bit hard to start the year without normal hydrology as an assumption. it's a bit hard to start the year without normal hydrology as an assumption So that's where we start off, just being transparent about the relative change. so that's where we start off just being transparent about the relative change

Speaker 4: Obviously, the interesting thing when it comes to the Philippines now is that we have two new projects, two new battery storage projects that are in construction and that we are anticipating to reach financial COD in the first half of this year. And that is increasing our capacity related to battery storage from 24 MW to 80 MW in the country. So a tripling of capacity that comes into operation first half this year, that enables us to increase our participation in the ancillary services market. Obviously, the interesting thing when it comes to the Philippines now is that we have two new projects, two new battery storage projects that are in construction and that we are anticipating to reach financial COD in the first half of this year. obviously the interesting thing when it comes to the philippines now is that we have two new projects two new battery storage projects that are in construction and that we are anticipating to reach financial cod in the first half of this year And that is increasing our capacity related to battery storage from 24 MW to 80 MW in the country. and that is increasing our capacity related to battery storage from 24 mw to 80 mw in the country So a tripling of capacity that comes into operation first half this year, that enables us to increase our participation in the ancillary services market. so a tripling of capacity that comes into operation first half this year that enables us to increase our participation in the ancillary services market And then on top of that, we are also intending to move more projects. We have more projects in backlog, also related to battery storage, that we will also aim to move into financial close and start of construction, also relatively soon, and that will further then increase our capacity on the ancillary services market and increasing our flexibility in the Philippines and increasing our ability to tap into several revenue streams, as I talked about in the country. And then on top of that, we are also intending to move more projects. and then on top of that we are also intending to move more projects We have more projects in backlog, also related to battery storage, that we will also aim to move into financial close and start of construction, also relatively soon, and that will further then increase our capacity on the ancillary services market and increasing our flexibility in the Philippines and increasing our ability to tap into several revenue streams, as I talked about in the country. we have more projects in backlog also related to battery storage that we will also aim to move into financial close and start of construction also relatively soon and that will further then increase our capacity on the ancillary services market and increasing our flexibility in the philippines and increasing our ability to tap into several revenue streams as i talked about in the country

Speaker 3: I just flipped to the slide that you showed how significant ancillary services has been sustained over several quarters. So with the ramp-up of battery capacity, it's even more robustified. I just flipped to the slide that you showed how significant ancillary services has been sustained over several quarters. i just flipped to the slide that you showed how significant ancillary services has been sustained over several quarters So with the ramp-up of battery capacity, it's even more robustified. so with the ramp-up of battery capacity it's even more robustified

Speaker 4: Mm. Mm. mm

Speaker 5: One follow-up on Ukraine. Any insurance recovery or compensation mechanism you can detail? One follow-up on Ukraine. one follow-up on ukraine Any insurance recovery or compensation mechanism you can detail? any insurance recovery or compensation mechanism you can detail

Speaker 4: No, currently, in the current situation in Ukraine, and we have to remember that the war is soon entering its fifth year. It's not really possible to get the insurance which is going to cover these kinds of invasion events in Ukraine. No, currently, in the current situation in Ukraine, and we have to remember that the war is soon entering its fifth year. no currently in the current situation in ukraine and we have to remember that the war is soon entering its fifth year It's not really possible to get the insurance which is going to cover these kinds of invasion events in Ukraine. it's not really possible to get the insurance which is going to cover these kinds of invasion events in ukraine

Speaker 5: Okay, quite a lot of questions today. Just, I think two more. Lars Christensen, Falkner Securities. Congratulations on the strong results. For the Energy Valley project in Egypt, should we expect any asset rotation to help fund the investment? Okay, quite a lot of questions today. okay quite a lot of questions today Just, I think two more. just i think two more Lars Christensen, Falkner Securities. lars christensen falkner securities Congratulations on the strong results. congratulations on the strong results For the Energy Valley project in Egypt, should we expect any asset rotation to help fund the investment? for the energy valley project in egypt should we expect any asset rotation to help fund the investment

Speaker 4: As we've said, we are continuing to work on our divestment program. We will continue to work on optimizing our portfolio over time and have a very active perspective on our portfolio. In previous presentations, we discussed the fact that we will, in certain projects, also go down in ownership stakes through a layered structure, where we are still able to maintain control over the project. As we've said, we are continuing to work on our divestment program. as we've said we are continuing to work on our divestment program We will continue to work on optimizing our portfolio over time and have a very active perspective on our portfolio. we will continue to work on optimizing our portfolio over time and have a very active perspective on our portfolio In previous presentations, we discussed the fact that we will, in certain projects, also go down in ownership stakes through a layered structure, where we are still able to maintain control over the project. in previous presentations we discussed the fact that we will in certain projects also go down in ownership stakes through a layered structure where we are still able to maintain control over the project

Speaker 3: but to take down our direct equity investment into the project, and through that, manage also the capital investment over time. but to take down our direct equity investment into the project, and through that, manage also the capital investment over time. but to take down our direct equity investment into the project and through that manage also the capital investment over time

Speaker 5: Okay, we'll talk, just one last question. Do you see any problems of the power grid in any of your countries, you have, where you have large projects, and how do you solve these problems? Okay, we'll talk, just one last question. okay we'll talk just one last question Do you see any problems of the power grid in any of your countries, you have, where you have large projects, and how do you solve these problems? do you see any problems of the power grid in any of your countries you have where you have large projects and how do you solve these problems

Speaker 4: It is clear that sort of with the increased penetration of renewables, especially intermittent renewables, there are situations, I think in all grids, in all countries, where you will have temporary challenges with the grid that will either have to be managed through strengthening the grid over time, or also with the addition of storage capacity and batteries. And there, I'd like to draw the attention to Energy Valley projects. It's three installations, two pure battery installations at two different locations and one hybrid facility. And obviously, those standalone battery installations, they are put where they are in order to help balance the grid and mitigate those types of concerns in those situations. It is clear that sort of with the increased penetration of renewables, especially intermittent renewables, there are situations, I think in all grids, in all countries, where you will have temporary challenges with the grid that will either have to be managed through strengthening the grid over time, or also with the addition of storage capacity and batteries. it is clear that sort of with the increased penetration of renewables especially intermittent renewables there are situations i think in all grids in all countries where you will have temporary challenges with the grid that will either have to be managed through strengthening the grid over time or also with the addition of storage capacity and batteries And there, I'd like to draw the attention to Energy Valley projects. and there i'd like to draw the attention to energy valley projects It's three installations, two pure battery installations at two different locations and one hybrid facility. it's three installations two pure battery installations at two different locations and one hybrid facility And obviously, those standalone battery installations, they are put where they are in order to help balance the grid and mitigate those types of concerns in those situations. and obviously those standalone battery installations they are put where they are in order to help balance the grid and mitigate those types of concerns in those situations Similarly, same thing is happening in South Africa, where we are now building one standalone battery project, and where we have another one in our backlog. And these batteries are obviously also put into places where they help balance, help balance the grid, and mitigate the challenges that will, in certain places, come into the grid. So this is an important part of our business going forward. We have to be very. We have to be on top of the grid situation in the markets where we operate and make sure that we focus on the areas where there is grid capacity and where we will be able to implement new renewable energy projects and deliver the energy onto the grid. Similarly, same thing is happening in South Africa, where we are now building one standalone battery project, and where we have another one in our backlog. similarly same thing is happening in south africa where we are now building one standalone battery project and where we have another one in our backlog And these batteries are obviously also put into places where they help balance, help balance the grid, and mitigate the challenges that will, in certain places, come into the grid. and these batteries are obviously also put into places where they help balance help balance the grid and mitigate the challenges that will in certain places come into the grid So this is an important part of our business going forward. so this is an important part of our business going forward We have to be very. we have to be very We have to be on top of the grid situation in the markets where we operate and make sure that we focus on the areas where there is grid capacity and where we will be able to implement new renewable energy projects and deliver the energy onto the grid. we have to be on top of the grid situation in the markets where we operate and make sure that we focus on the areas where there is grid capacity and where we will be able to implement new renewable energy projects and deliver the energy onto the grid

Speaker 5: Thank you, Terje, Hans Jakob. One more from, from SEB, SEB. Thank you, Terje, Hans Jakob. thank you terje hans jakob One more from, from SEB, SEB. one more from from seb seb

Speaker 1: Thank you. Just a final question on asset rotation. The $3.4 billion, when you refer to asset rotation, that relates to projects already in operations as of today, right? Thank you. thank you Just a final question on asset rotation. just a final question on asset rotation The $3.4 billion, when you refer to asset rotation, that relates to projects already in operations as of today, right? the $3.4 billion when you refer to asset rotation that relates to projects already in operations as of today right

Speaker 4: That's correct. That's correct. that's correct

Speaker 1: Thank you. Thank you. thank you

Speaker 5: One more from Andreas in Nordea. One more from Andreas in Nordea. one more from andreas in nordea

Speaker 2: Thank you. So, just the last one, on your investment target, NOK 1 billion of equity annually. The Energy Valley project, I guess you will structure it perhaps the same way you're doing Obelisk, aiming for an equity bridge, perhaps. The way you're seeing your backlog now, are you actually using the full of your NOK 1 billion equity injection capacity, the way you're looking to structure that backlog? Thank you. thank you So, just the last one, on your investment target, NOK 1 billion of equity annually. so just the last one on your investment target nok 1 billion of equity annually The Energy Valley project, I guess you will structure it perhaps the same way you're doing Obelisk, aiming for an equity bridge, perhaps. the energy valley project i guess you will structure it perhaps the same way you're doing obelisk aiming for an equity bridge perhaps The way you're seeing your backlog now, are you actually using the full of your NOK 1 billion equity injection capacity, the way you're looking to structure that backlog? the way you're seeing your backlog now are you actually using the full of your nok 1 billion equity injection capacity the way you're looking to structure that backlog

Speaker 3: I think the three of us will fight to answer that question. Do you wanna go? I think the three of us will fight to answer that question. i think the three of us will fight to answer that question Do you wanna go? do you wanna go

Speaker 5: No, you can go. No, you can go. no you can go

Speaker 3: Okay. Okay. okay

Speaker 5: All right. All right. all right

Speaker 3: Under construction and in backlog, there is equity around $3 billion, and that is excluding Energy Valley. So Energy Valley is sizable, as you could imagine, and we will come back to more granularity on the project as it is progressing, but we are well underway to reach our target and the guiding from the strategy update. That's basically directionally what I would like to say. But under construction and backlog is around $3 billion equity. Under construction and in backlog, there is equity around $3 billion, and that is excluding Energy Valley. under construction and in backlog there is equity around $3 billion and that is excluding energy valley So Energy Valley is sizable, as you could imagine, and we will come back to more granularity on the project as it is progressing, but we are well underway to reach our target and the guiding from the strategy update. so energy valley is sizable as you could imagine and we will come back to more granularity on the project as it is progressing but we are well underway to reach our target and the guiding from the strategy update That's basically directionally what I would like to say. that's basically directionally what i would like to say But under construction and backlog is around $3 billion equity. but under construction and backlog is around $3 billion equity

Speaker 2: Will that be cash? Will that be cash? will that be cash

Speaker 3: We haven't provided super detailed analysis of this today, and I think we'll come back to it, but I read your question, Andreas, is this in line with what you said you would inject of equity? And I think we are fairly aligned what we have on the plate as is. We haven't provided super detailed analysis of this today, and I think we'll come back to it, but I read your question, Andreas, is this in line with what you said you would inject of equity? we haven't provided super detailed analysis of this today and i think we'll come back to it but i read your question andreas is this in line with what you said you would inject of equity And I think we are fairly aligned what we have on the plate as is. and i think we are fairly aligned what we have on the plate as is

Speaker 2: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 5: Okay. With that, I think we say thank you to everyone and today's presentation. Thank you. Okay. okay With that, I think we say thank you to everyone and today's presentation. with that i think we say thank you to everyone and today's presentation Thank you. thank you

Speaker 4: Thank you very much. Thank you very much. thank you very much